ALL RIGHT. GOOD AFTERNOON. WE'LL
BEGIN TODAY'S HEARING THIS
ASSEMBLY BUDGET SUBCOMMITTEE ON
EDUCATION, FINANCE OR MAY REVISE
HEARING TODAY. WE'RE GOING TO
FOCUS ON HIGHER ED PROPOSALS AND
JUST AN ANNOUNCEMENT JUST HIGHER
ED. SO NONE OF THE K 12 OR
EARLIER THAT WILL BE TAKEN UP
TOMORROW MORNING. WE DO HAVE,
UM, PUBLIC COMMENT AT THE END OF
THE HEARING, AND WE PREFER THAT
THE PUBLIC COMMENT TODAY. FOCUS
ON THE HIGHER RED PIECES.
CERTAINLY WE KNOW THAT YOU SEE
CSU COMMUNITY COLLEGES AND THE
STUDENT AID COMMISSION. SO AS WE
BEGIN TODAY'S HEARINGS, LOOKING
AT THE MAY REVISE PROPOSALS WILL
ALSO FRAME SOME OF OUR ASSEMBLY
PROPOSALS AS WELL AND FOR HIGHER
EDUCATION ARE YOU KNOW, FOCUS ON
OUR MANTRA HAS ALWAYS BEEN
PRETTY SIMPLE, UM, ACCESS
AFFORDABILITY AND SUPPORTING OUR
STUDENTS, AND EVERY ISSUE THAT
WE FOCUS ON SHOULD BE FRAMED
AROUND THESE PRIORITIES. WHETHER
IT'S A BANNER BUDGET YEAR LIKE
WE HAD IN 21 22 OR THIS BUDGET
YEAR. IN 23 FOR UC AND CSU.
SPECIFICALLY OUR FOCUS HAS
ALWAYS BEEN ENROLLMENT GROWTH.
THAT'S WHAT WE HEAR LOUD AND
CLEAR. WE'RE GOING BACK HOME
TALKING TO OUR CONSTITUENTS, AND
WE MAKE SURE WE HAVE ADEQUATE
ACCESS AND HIGHER EDUCATION,
ESPECIALLY AT THE U. C SEGMENT,
UM WE DO THINK THAT OVERALL
THESE BUDGET PROPOSALS FROM THE
GOVERNOR BOTH IN JANUARY AND
THAT MAY REVISE ARE VERY SOLID.
OVERALL FINANCIAL FOOTING FOR
YOU SEE CSU AND COMMUNITY
COLLEGES. UM, A LOT OF
DEPARTMENTS IN THE STATE BUDGET
WOULD LOVE TO HAVE A 5% INCREASE
. OR IF YOU'RE A COMMUNITY
COLLEGE NORTH OF AN 8% INCREASE,
SO, UM, YOU KNOW, THOSE ARE VERY
FORTUNATE, UM, ISSUES TO BE, UM,
STANDING ON. UM YOU GO TALK TO
THE DEPARTMENTS IN SUB ONE. THEY
DON'T QUITE HAVE THAT. SO THERE
ARE SOME OVERARCHING ISSUES THAT
WE ARE HAVE UNFINISHED BUSINESS
TO TAKE CARE OF, AND WE'LL
CERTAINLY GET TO THAT TODAY. SO
WITH THAT WE'RE GOING TO BEGIN
WITH AN OVERVIEW OF, UM THE
BUDGET AND OVERALL HIGHER
EDUCATION OVERVIEW FROM D O F
AND L A. OH AND THEN WE'LL GET
PRESENTATIONS FROM THE FOUR
DEPARTMENTS ON SPECIFIC MAY
REVISION BUDGET LETTERS, SO
LET'S BEGIN WITH DEPARTMENT OF
VIOLENCE, FINANCE AND L A. L.
WE'LL START WITH DLF AND YOU
HAVE A PRESENTATION. I BELIEVE.
EXCELLENT. OKAY, TAKE YOUR TIME.
GOOD AFTERNOON CHAIR AND MEMBERS
MICHELLE KNEW IN WITH THE
DEPARTMENT OF FINANCE. I'M
JOINED BY MY COLLEAGUE JACK'S
WALLED GOVERNOR'S BUDGET
REFLECTED A REVENUE OUTLOOK THAT
WAS SUBSTANTIALLY DIFFERENT THAN
WHAT WAS SEEN IN THE LAST TWO
YEARS. WITH THE GOVERNOR'S
BUDGET, PROPOSING A 22.5 BILLION
SOLUTIONS PACKAGE FOR 23 24,
WHICH INCLUDED A VARIETY OF
DELAYS, FUND SHIFTS AND
REDUCTIONS. THEY MAY REVISION
SHOWS A FURTHER DECLINE OF
REVENUES WITH THE $31.5 BILLION
GAP. THE REVENUE OUTLOOK.
HOWEVER THE ADMINISTRATION
REMAINS COMMITTED TO THE SHARED
GOALS OF THE COMPACTS, WHICH
INCLUDE INCREASING ACCESS TO THE
UC AND CSU. IMPROVING IMPROVING
STUDENT SUCCESS WHILE ADVANCING
EQUITY. INCREASING THE
AFFORDABILITY OF HIGHER
EDUCATION. INCREASING INTER
SEGMENTAL COLLABORATION AND
SUPPORTING WORKFORCE
PREPAREDNESS IN HIGH DEMAND
CAREER PIPELINES. THE MERRY
VISION. AS YOU NOTED, MR CHAIR
REFLECTS CONTINUING SUPPORT FOR
THE 5% BASED AUGMENTATIONS
REFLECTED IN THE CONTEXT FOR THE
UC AND CSU AND THE MAY REVISION
PROPOSES TO FULLY FUND THE
STUDENT CENTERED FUNDING FORMULA
WITH THE STATUTORILY. COMPUTED
COST OF LIVING ADJUSTMENT OF
8.22. THAT BEING SAID. WE'RE
HAPPY TO TAKE ANY QUESTIONS, BUT
WE'LL MENTION THE SPECIFIC
DETAILS OF THE MAY REVISION
PROPOSALS WITH THE SPECIFIC MAY
REVISION LETTERS. THANK YOU.
THANK YOU. JENNIFER PATELLA
LEGISLATIVE ANALYST'S OFFICE. SO
AS YOU MAKE YOUR WAY THROUGH THE
SPECIFIC MAY REVISION, HIGHER
EDUCATION PROPOSALS LATER IN
YOUR AGENDA, YOU MIGHT JUST WANT
TO KEEP A FEW BIG PICTURE ISSUES
IN MIND. FIRST ON THE STATE'S
OVERALL BUDGET CONDITION. THE
ELIO ESTIMATES OF PERSONAL
INCOME CORPORATE AND SALES TAX
REVENUE COMBINED ARE 11 BILLION
BELOW. THE GOVERNORS MAY
REVISION LEVEL, SO WE THINK THE
ADMINISTRATION'S ESTIMATES ARE
OPTIMISTIC. REVENUES WERE TO
COME IN LOWER. UM THE AMOUNT OF
BUDGET SOLUTION AND YOUR BUDGET
CHOICES WILL BE MORE DIFFICULT.
SECOND ON NEW SPENDING PROPOSALS
SO DUE TO THE ANTICIPATED
WEAKNESS IN STATE REVENUES,
OVERARCHING GUIDANCE IS TO
REJECT NEW MAY REVISIONS,
SPENDING PROPOSALS WITHOUT
PREJUDICE. SO THE POINT OF THIS
WOULD BE TO PROTECT YOUR CORE
ONGOING PROGRAMS FROM REDUCTIONS
, WHETHER IT BE LATER THIS YEAR
OVER THE NEXT FEW YEARS. WE
WOULD APPLY THIS HIGH THRESHOLD
FOR ANY NEW SPENDING TO BOTH THE
98 THE NON 98 SIDES OF YOUR
BUDGET AGAIN. THERE MIGHT BE A
FEW EXCEPTIONS IF YOU THINK THE
NEW PROPOSAL IS DEALING WITH AN
EMINENT HEALTH OR SAFETY RISK,
BUT AGAIN GENERALLY WE WOULD
ENCOURAGE YOU TO HAVE A VERY
HIGH STANDARD FOR NEW SPENDING.
THIRD ON THE COMMUNITY COLLEGE
PORTION OF THE PROPOSITION 98
BUDGET, YOU'RE GOING TO HEAR
MUCH MORE ABOUT THE 98 PACKAGE
TOMORROW WHEN YOU WHEN YOU GO
OVER THE Q 12 ISSUES, BUT JUST
FOCUSING ON THE ARCHITECTURE AND
ON THE COMMUNITY COLLEGE PORTION
NORMALLY WE WOULD SAY OR OR
SOMETIMES WE WOULD SAY THAT THE
ADMINISTRATION'S 98 PACKAGE IS A
GOOD STARTING POINT. BUT THIS
YEAR WE'RE GOING TO SUGGEST YOU
START WITH AN ALTERNATIVE, A
BASELINE BUDGET. OUR CONCERN IS
THAT THE MAY REVISION HAS A LOT
OF ONGOING PROGRAMS SUPPORTED
WITH ONE TIME MONEY. IT HAS A
LARGER STRUCTURAL GAP THAN IT
DID IN JANUARY. IN JANUARY.
THERE WAS NO STRUCTURAL GAP FOR
THE COMMUNITY COLLEGES. UNDER
THE MAY REVISION, THERE'S
SLIGHTLY MORE THAN 500 MILLION
IN ONGOING COLLEGE COSTS THAT
ARE BEING SUPPORTED WITH ONE
TIME MONEY. SO RATHER THAN
HAVING YOUR STARTING POINT. HAVE
YOU HAD THESE STRUCTURAL GAPS
THAT YOU WOULD HAVE TO DEAL WITH
NEXT YEAR? WE RECOMMEND A
DIFFERENT STARTING POINT, WHICH
IS A BASELINE BUDGET.
IMPORTANTLY A BASELINE BUDGET
CAN ACCOMMODATE A COLA FOR ALL
OF THOSE 98 PROGRAMS AND CUTE,
INCLUDING COMMUNITY COLLEGE
APPORTIONMENT THAT TYPICALLY
RECEIVE A COLA OF 5.1% RATE SO
STILL HIGH BY HISTORICAL
STANDARDS. THE BASELINE BUDGET
ALSO HAS THE ADVANTAGE THAT YOU
COULD AVOID SOME OF THE MID YEAR
CUTS THAT ARE IN THE MAY
REVISION. FOR EXAMPLE, THE MAY
REVISION MAKES IT CUT TO
COMMUNITY COLLEGES PRIOR COVID
BLOCK GRANT FUNDING AND PRIOR
MAINTENANCE PROJECT FUNDING
FUNDING THAT'S ALREADY GONE OUT
TO THE FIELD WHERE THERE'S
ALREADY PLANS TO USE IT. YOU
COULD AVOID THAT UNDER A
BASELINE APPROACH. AGAIN THE BIG
PICTURE OF THE BASELINE IS JUST
TO PROTECT YOUR CORE ONGOING
PROGRAMS MOVING FORWARD LASTLY
ON THE UNIVERSITY'S BUDGETS,
WHEREAS THE PROMPT 98 MINIMUM
GUARANTEE UNDER THE MAY REVISION
AS BEING ADJUSTED DOWNWARD
BECAUSE YOUR REVENUES HAVE
WEAKENED THE NON 98 ONGOING
SPENDING FOR THE UNIVERSITIES IS
GOING UP. THE MAIN REVISION, AS
YOU HEARD RETAIN TO THOSE 5%
INCREASES FOR THE UNIVERSITIES
AND AS YOU'VE HEARD ALL YEAR,
THOSE ARE HIGHER PERCENTAGES
THAN MANY OTHER ASPECTS OF THE
STATE'S SECTORS OF THE STATE
BUDGET. YOU COULD CONSIDER IF
YOU HAD TO MOVING FORWARD,
LOWERING THOSE RATES FOR UC AND
CSU. THE MOST NOTABLE CHANGE
UNDER THE MAY REVISION IS THAT
THE GOVERNOR PROPOSES CONVERTING
SOME èC NCSU CAPITAL PROJECTS
THAT PREVIOUSLY WERE PROPOSED TO
BE FUNDED WITH CASH TO DEBT
FINANCING. IN TOTAL, IT'S 2.1
BILLION IN PROJECTS CAPITAL
PROJECTS THAT WOULD BE DEBT
FINANCED. THIS IS A RELATIVELY
LARGE AMOUNT OF CAPITAL
PROJECTS. THE NEW ONGOING DEBT
SERVICE ASSOCIATED WITH THOSE
PROJECTS IS 100 AND 51 MILLION
ACROSS èC NCSU COMBINED. THAT'S
WHY YOU HAVE THIS HIGHER
SPENDING UNDER THE MAY REVISION
, SO WHY YOUR REVENUES ARE
WEAKENING THE PROPOSAL BEFORE
YOU IS TO SPEND MORE THIS CAN
CREATE CHALLENGES FOR YOU.
OBVIOUSLY LATER THIS YEAR AND
OUT YEARS IF YOU WERE TO SEE A
REDUCTION IN REVENUES SO WHY
DEBT FINANCING CAN BE A VERY
REASONABLE WAY TO FUND PROJECTS
. YOU MIGHT WANT TO DO SOME OF
THAT IN YOUR BUDGET, WE WOULD
JUST ENCOURAGE YOU TO DO THOSE
HIGHEST PRIORITY PROJECTS THAT
ARE STATE PRIORITIES WHERE YOU
HAVE STRONG JUSTIFICATION
BECAUSE OF A HEALTH SAFETY, LIFE
SAFETY CAPITAL RENEWAL DEFERRED
MAINTENANCE REASON YOU THINK
IT'S REALLY IMPORTANT TO
PROCEED. SO THAT'S JUST SOME BIG
PICTURE ISSUES YOU MIGHT WANT TO
KEEP IN MIND AS YOU WALK THROUGH
THE REST OF YOUR AGENDA. OKAY
THANK YOU. UH WE HAVE ANY
QUESTIONS ON THE OVERVIEW PIECE
BEFORE WE GET TO THE SEGMENT
PROPOSALS SEEING NONE. LET'S
BRING UP FIRST, THE UNIVERSITY
OF CALIFORNIA. TO HAVE
DEPARTMENT OF FINANCE LEO AS
WELL AS THE èC. PRESENT THERE.
MAY REVISE PROPOSALS
.
GOOD AFTERNOON SHARING MEMBERS.
PLEASE BRING. PLEASE BEGIN THE
FORMAL FINANCE. THE MAJOR
REVISION, MAINTAINS THE
MULTIYEAR COMPACT WITH THE
UNIVERSITY OF CALIFORNIA AND
SUSTAINS AN INCREASE OF
APPROXIMATELY 215.5 MILLION
ONGOING GENERAL FUND TO SUPPORT
OPERATING COSTS REPRESENTING A
5% BASE INCREASE. ALSO THERE IS
A SHIFT OF 4.8 MILLION FROM USES
MAIN APPROPRIATION TO PROVIDE
CONTINUOUS SUPPORT FOR èC
AGRICULTURE AND NATURAL
RESOURCES. THERE'S A COUPLE OF
SHIFTS IN FINANCING APPROACH IN
AN EFFORT TO ADDRESS THE CURRENT
FISCAL CHALLENGES THAT MAY
REVISION SHIFTS THE FINANCING
APPROACH OF SEVERAL 2022 CAPITAL
ALLY PROJECTS. MORE SPECIFICALLY
, ONE TIME FUNDING FOR SEVERAL
PROJECTS IS REPLACED WITH DEPTH
SERVICE AS FOLLOWS. 30 MILLION
ONGOING GENERAL FUND IS PROVIDED
TO SUPPORT DEBT SERVICE COSTS
ASSOCIATED WITH THE èC HIGHER
EDUCATION STUDENT HOUSING GRANT
PROGRAM. THIS FUNDING REPLACES
APPROXIMATELY 437 MILLION.
INCURRING HERE IN PLAN GENERAL
FUND SUPPORT FOR èC. MY COLLEGE
WILL CONTINUE TO DISCUSS MORE
ABOUT THIS ISSUE AND HOUSING A
LITTLE BIT. THERE'S ALSO A 33.3
MILLION ONGOING GENERAL FUND TO
SUPPORT DEBT SERVICE COSTS
ASSOCIATED WITH UC MERCED AND U
C RIVERSIDE CAMPUS EXPANSION
PROJECT. AND THE U. C BERKELEY
CLEAN ENERGY CAMPUS PROJECT.
THIS ACTION REPLACES 498,000,001
TIME GENERAL FUND PROVIDING THE
2022 BUDGET ACT. ADMINISTRATION
IS COMMITTED TO SUPPORTING THIS
PROJECTS THAT THAT SERVICE AND
FUNDING APPROACH MAKES IT
POSSIBLE FOR ALL PROJECTS TO
RECEIVE THE APPROPRIATE SUPPORT.
THE MAJOR REVISION ALSO INCLUDES
TWO MILLION ONGOING GENERAL FUND
TO SUPPORT THE UC RIVERSIDE
SCHOOL OF MEDICINE ALSO
5,000,001 TIME GENERAL FUND TO
SUPPORT THE UNIVERSITY OF
CALIFORNIA, LOS ANGELES. ROB J.
BUNCHE CENTER FOR AFRICAN
AMERICAN STUDIES, AND LASTLY,
THE MAY REVISION INCLUDES
2,000,001 TIME GENERAL FAN. TO
PILOT AN ENTREPRENEUR IN
RESIDENCE PROJECT FOR FOREIGN
BORN ENTREPRENEURS, AND YOU SEE
STUDENTS IN SUPPORT OF JOB
CREATION AND FOREST ENGL OVAL
TALENT FOR INNOVATION IN AREAS
OF NEED COMPLEMENT RECENT
INVESTMENTS IN IMMIGRATION,
TALENT AND AN OPPORTUNITY TO
HAVE EFFORTS FOR YOUTH COLLEGE
STUDENTS, WORKERS AND PURSUING
PROFESSIONAL LICENSE AND
ENTREPRENEURSHIP. HAPPY TO
ANSWER ANY QUESTIONS. EXCUSE ME.
I HAVE A QUICK PRESENTATIONS. GO
AHEAD. STUDENT HOUSING. UH GOOD
AFTERNOON CHAIR AND MEMBERS.
MICHELLE KNEW IN WITH THE
DEPARTMENT OF FINANCE FOR THE
HIGHER EDUCATION STUDENT HOUSING
GRANT PROGRAM. THE MAYOR
REVISION PROPOSES STRUCTURAL
CHANGES TO THE PROGRAM AS PART
OF A $31.5 BILLION AH SOLUTIONS
PACKAGE. THE MAY REVISION
PROPOSES TO SHIFT THE CURRENT
AND PLANNED GENERAL FUND SUPPORT
OF APPROXIMATELY 1.1 BILLION FOR
BOTH THE U. C AND THE CSU UNDER
THIS PROGRAM TO NOW BE FUNDED BY
UC AND CSU ISSUED BONDS. RATHER
THAN BE FUNDED WITH UPFRONT
GENERAL FUND. UH IN ADDITION TO
MAY REVISION ALSO PROPOSES 75
MILLION ONGOING GENERAL FUND TO
SUPPORT THE UNDERLYING DEBT
SERVICE ON THESE BONDS, OF WHICH
30 MILLION IS PROPOSED FOR THAT
SERVICE FOR THESE èC PROJECTS
SPECIFICALLY, WHICH WAS
MENTIONED EARLIER BY MY
COLLEAGUE, UH, IN ADDITION TO
MAY, REVISION DOES CONTINUE TO
PROPOSE GENERAL FUND FOR THIS
PROGRAM BUT FOR THE COMMUNITY
COLLEGES SHARE OF THE PROGRAM.
SPECIFICALLY THE MAY REVISION
PROPOSES 450 MILLION. ONE TIME
GENERAL FUND FOR 2023 24 95
POINT 4,000,001 TIME GENERAL
FUND FOR 2024 25 FOR AFFORDABLE
STUDENT HOUSING PROJECTS AT THE
COMMUNITY COLLEGES. FOR THE
STUDENT HOUSING REVO REVOLVING
LOAN PROGRAM THAT MAY REVISION
PROPOSES NO CHANGES BEYOND WHAT
WAS PROPOSED AT THE GOVERNOR'S
BUDGET. UH, THE MAY REVISION
PROPOSES TO SHIFT FROM GENERAL
FUND SUPPORT TO BOND FINANCING
FOR THESE UC AND CSU PROJECTS. A
REVISION MAINTAINS THE OVERALL
FUNDING COMMITMENT FOR THE
STUDENT HOUSING GRANT PROGRAM.
UH GIVEN TO ME, REVISION OUTLOOK
, AND THE ADMINISTRATION
CONTINUES TO RECOGNIZE THE
IMPORTANCE OF AFFORDABLE STUDENT
HOUSING, BUT PROPOSES TO TAKE
THESE ACTIONS GIVEN WHAT WE'RE
SEEING AT THE MAY REVISION, SO
WITH THAT HAPPY TO TAKE ANY
QUESTIONS YOU HAVE. OKAY. THANK
YOU. NEXT. LET'S HEAR FROM ELIO.
THANK YOU, MR CHERRY, INCLINED
WITH THE L A. OH, UM THE LARGEST
CHANGES IN THE MAY REVISION FOR
èC INVOLVES THE SHIFTING OF HOW
THE STUDENT HOUSING PROJECTS AND
CAPITAL OUTLAY PROJECTS ARE
GOING TO BE FUNDED. MOVING FROM
GENERAL FUND TO UNIVERSITY BAND
FUNDED WITH THE STATE PAYING THE
ASSOCIATED DEBT SERVICE. IN THE
INTEREST OF TIME. I'M GOING TO
FOCUS THE BULK OF MY
PRESENTATION ON THESE PROJECTS.
HMM. REGARDING STUDENT HOUSING.
THIS PROPOSAL WOULD SHIFT UCS
ENTIRE $437 MILLION ALLOCATION.
UH FROM GENERAL FUND TO
UNIVERSITY BOND FUNDED WITH THE
STATE PAYING THE ASSOCIATED DEBT
SERVICE ROUGHLY $30 MILLION
ANNUALLY. AS YOU JUST HEARD
EARLIER. THERE ARE A COUPLE OF
ITEMS TO CONSIDER FOR THIS
PROPOSAL. THAT FINANCING
PROJECTS SUCH AS THESE ALLOWS
THE STATE TO MOVE FORWARD WITH
HIGH PRIORITY PROJECTS EVEN WHEN
THERE IS NOT CASH AVAILABLE TO
COMPLETE THE PROJECTS ALL UP
FRONT. AS IT SPREADS THESE
PROJECT COSTS ACROSS THE USEFUL
LIFE OF THE FACILITY. ONE
CONSEQUENCE OF THIS ACTION IS
THAT THIS SIGNIFICANTLY
INCREASES THE TOTAL COST OF
THESE PROJECTS DUE TO INTEREST
PAYMENTS, ROUGHLY DOUBLING THE
PROJECT'S COST. THIS IS GOING TO
BE TRUE FOR ALL THE PROJECTS
THAT WILL BE SPEAKING ON
MOMENTARILY. FOR THIS PARTICULAR
ITEM. IT ALSO COMMITS STATE
FUNDS TO PROJECTS THAT
TRADITIONALLY HAVE BEEN SELF
SUPPORTING ONE THAT ADDRESSING
BILLIONS OF DOLLARS IN
RENOVATIONS IDENTIFIED AS NEEDED
AND UCS EXISTING ACADEMIC
BUILDINGS. AN ALTERNATIVE TO THE
MAY REVISION PROPOSAL IS TO
COVER THE DEBT SERVICE ON
ALREADY APPROVED PROJECTS
TOTALING 389 MILLION. BUT
APPROVED KNOWN NEW PROJECTS. OF
THE 30 MILLION IN PROPOSED
ONGOING DEBT SERVICE PAYMENTS.
26.7 MILLION IS FOR PREVIOUSLY
APPROVED PROJECTS. THIS APPROACH
IS MORE PRUDENT THAN THE MAY
REVISION APPROACH IN THAT IT
LOWERS ONGOING SPENDING, MAKING,
BALANCING FUTURE BUDGETS AND
SUPPORTING ONGOING PROGRAMS MORE
MANAGEABLE. REGARDING THE
BERKELEY CLEAN ENERGY CAMPUS
PROJECT. THIS PROJECT WAS ALSO
SHIFTED FROM GENERAL FUND TO
UNIVERSITY BOND FUNDED WITH THE
STATE PAIN THE ASSOCIATED DEBT
SERVICE, WHICH WOULD BE ROUGHLY
16.7 MILLION ANNUALLY. IF THE
LEGISLATURE DETERMINES THAT THIS
PROJECT REMAINS A HIGH PRIORITY
, IT COULD APPROVE THE SHIFTED
DEBT FINANCING. HOWEVER YOU SEE
HAS INDICATED THAT IT IS UNCLEAR
AT THIS TIME IF ADDITIONAL STATE
SUPPORT WILL BE NEEDED IN EXCESS
OF THE 249 MILLION IN STATE
CONTRIBUTION THAT'S ALREADY BEEN
PROGRAMMED TO COMPLETE THE
PROJECT. FURTHERMORE THE
CAMPUSES ANNOUNCED A
CONTRIBUTION TOWARD THE PROJECT
ALSO REMAINS UNCLEAR. EVEN SOME
QUESTIONS UNANSWERED AS TO HOW
THE ENTIRE PROJECTS CLASS WILL
BE FINANCED. REGARDING THE
RIVERSIDE CAMPUS EXPANSION
PROJECT. THE $154.5 MILLION
PROJECT WAS ALSO SHIFTED FROM
GENERAL FUND TO UNIVERSITY BOND
FUNDED WITH THE STATE PAYING THE
ASSOCIATED DEBT SERVICE. ROUGHLY
$10.3 MILLION ANNUALLY. WE
RECOMMEND APPROVING THIS PROJECT
AS IT IS IN LINE WITH OUR
RECOMMENDATIONS THAT WE MADE
EARLIER THIS YEAR. THIS PROJECT
WAS LISTED AS YOU CRS TAP
FUNDING PRIORITY AND YOU SEE IS
2021 27 CAPITAL FINANCING PLAN.
ADDITIONALLY YOU CR HAS RECENTLY
EXPERIENCED SUBSTANTIAL
HEADCOUNT ENROLLMENT GROWTH
GROWING BY OVER 60 5600 STUDENTS
ARE ROUGHLY 27% OVER THE PAST 10
YEARS. ADDITIONALLY FACILITY
UTILIZATION REPORTS INDICATE
THAT YOU SEE ARE IS USING THE
EXISTING CLASSROOM SPACE AT IN
EXCESS OF 100% OF LEGISLATIVE
STANDARDS AND LAB SPACES IN
EXCESS OF 125% OF LEGISLATIVE
STANDARDS, WHICH THIS PROJECT
WOULD HELP TO MITIGATE.
REGARDING THE MERCED CAMPUS
EXPANSION PROJECT. A REVISION
ALSO SHIFTS THIS PROJECT FROM 94
POINT 5,000,002 IN GENERAL FUND
TO UNIVERSITY BAND FUNDED WITH
THE STATE PAYING THE ASSOCIATED
DEBT SERVICE ROUGHLY $6.3
MILLION ANNUALLY. REGARDLESS OF
THE FUNDING APPROACH. WE
RECOMMEND REJECTING THE PROPOSAL
AT THIS TIME. THE PROJECT IS NOT
SERVIN IMMEDIATE CAMPUS OR STATE
NEED, AND IT IS STILL IN ITS
EARLY PLANNING PHASES. SAID
INDICATED THAT IT LIKELY WILL
NOT NEED ADDITIONAL ACADEMIC
SPACE UNTIL ENROLLMENT REACHES
12,500 STUDENTS IF MERCED
CONTINUES TO GROW AT THE SAME
PACE OVER THE NEXT FIVE YEARS,
AS IT HAS OVER THE PREVIOUS FIVE
YEARS, ITS ENROLLMENT WOULD
STILL FALL FAR BELOW THAT
THRESHOLD, TOTALLY ROUGHLY
10,400 STUDENTS BY THE 2027 2028
ACADEMIC YEAR. WITH RESPECT TO
THE NEW ONE TIME INITIATIVES.
THERE ARE TWO NEW ONE TIME
INITIATIVES THAT WE RECOMMEND
REJECTING WITHOUT PREJUDICE. DUE
TO THE ANTICIPATED REVENUE
WEAKNESS FACING THE STATE. WE
RECOMMEND AGAINST ANY NEW
SPENDING UNLESS THOSE PROPOSALS
ADDRESS IMMEDIATE HEALTH AND
SAFETY RISKS, WHICH THESE
PROPOSALS DO NOT THANK YOU VERY
MUCH. THANK YOU. NEXT LET'S HEAR
FROM THE UNIVERSITY OF
CALIFORNIA. THANK YOU, CHAIR
MCCARTHY AND MEMBERS OF THE
COMMITTEE AND SAY OVER 10 AND
FOR THE UNIVERSITY OF
CALIFORNIA. THE UNIVERSITY IS
GRATEFUL. THE GOVERNOR NEWSOM
FOR HIS MAY REVISION PROPOSAL
THAT WOULD GIVE THE UNIVERSITY
ADDITIONAL FUNDS FOR SPECIAL
PROGRAMS AND CONTINUE TO PROPOSE
THE SO BASED BUDGET INCREASE FOR
THE UNIVERSITY. UM THIS INCREASE
WOULD ALLOW US TO ENROLL MORE
STUDENTS AND, UH, CONTINUE THE
SERVICES THAT WE CURRENTLY HAVE
UNCOVERED. THOSE COST INCREASES
AND WE ARE REQUESTING YOUR
SUPPORT FOR THE GOVERNOR'S MAY
REVISION BECAUSE YOU HAVE A VERY
LONG HEARING AHEAD OF YOU. I'M
GOING TO KEEP MY REMARKS RATHER
SHORT TODAY. UM THE GOVERNOR'S
PROPOSING THE SHIFT THE HIGHER
EDUCATION HOUSING GRANT PROGRAM
FROM DIRECT STATE APPROPRIATION
TO USE HIS OWN INTERNAL MAYBE 94
BOND FUNDS. WE DO BELIEVE WE CAN
MAKE THIS PROPOSAL WORK. UM WE
WILL BE ABLE TO MAINTAIN THE LOW
INCOME, UM, RENTAL REQUIREMENTS
UNDER THIS PROGRAM. IT WITH OUR
OWN A B 94 BOND FUNDS AS LONG AS
WE'RE GETTING THAT DEBT SERVICE
ANNUALLY FROM THE STATE, THERE'S
A FEW THINGS I DO WANT TO NOTE
ABOUT THAT, UM, WE DO HAVE
ENOUGH ROOM IN OUR A B 94 BONDS
CURRENTLY TO MAKE THE SHIFT
HAPPEN. WE ARE REQUIRED BY STATE
LAW TO KEEP OUR INTERNAL BOND
FINANCING AS FIFTH. AT 15% OR
BELOW OF OUR STATE GENERAL FUND
ALLOCATION. UM, WE STILL HAVE
ENOUGH ROOM TO ABSORB THESE
HOUSING GRANTS INTO OUR A B 94.
BOND FUNDS ARE CURRENT 18 94
PLANNING RATE ON INTEREST IS
4.25% INTEREST RATES HAVE BEEN
CHANGING AND INCREASING RECENTLY
, AND THERE IS A POSSIBILITY
THAT THESE INTEREST RATES WILL
INCREASE OUR CHANGE. UH BEFORE
WE ARE ABLE TO SELL THE BONDS,
AND IF THAT IS THE CASE IF THE
DEBT SERVICE IS NOT SUFFICIENT,
WE WOULD LIKE TO COME BACK FOR A
CONVERSATION ON A TECHNICAL
ADJUSTMENT. UM THE GOVERNOR'S
ALSO PROPOSING TO SHIFT CAPITAL
OUTLAY FUNDING FROM UC BERKELEY
CLEAN ENERGY PROJECT AND THE UC
MERCED AND UC RIVERSIDE
CLASSROOM EXPANSION PROJECTS
ONTO USES A B 94 DEATH FINANCING
. WE ALSO BELIEVE WE CAN ABSORB
THESE AND MAKE THAT AH SHIFT
WORK, SO WE'RE ABLE TO DO THAT.
UM THE NEW CLASSROOM SPACE
PROVIDED BY UC MERCED AND UC
RIVERSIDE CAMPUSES. EXPANSION
PROJECTS WILL BE NECESSARY FOR
THE UC SYSTEM TO CONTINUE
EXPANDING ENROLLMENT. AND LAST
TIME I WAS INVITED TO SPEAK WITH
YOU IN FRONT OF THIS COMMITTEE,
UM, THIS COMMITTEE MADE IT VERY
CLEAR THAT YOU WOULD LIKE TO SEE
ADDITIONAL CALIFORNIA
UNDERGRADUATE ENROLLMENT TAKES
PLACE AT THE UNIVERSITY OF
CALIFORNIA. PRESIDENT DRAKE
HEARD YOU AND, UH, CAMPUSES ARE
WORKING ON ADMITTING MORE
STUDENTS FOR FALL OF 2023. AT
THIS POINT, I WANT TO BE
CAUTIOUS ON MAKING ANY SORT OF
PROMISES. BUT AT THIS POINT WE
ARE LOOKING AT ENROLLING ABOUT
1000 NEW CALIFORNIA
UNDERGRADUATES OR FALL OF 2023.
LAST TIME I SPOKE TO YOU, THE
NUMBER WAS 4200. SO WE HAVE
SHIFTED THAT UPWARD GREATLY IN
RESPONSE TO LEGISLATIVE INTEREST
IN SEEING THAT NUMBER INCREASED
. IT WILL REQUIRE US TO RECEIVE
THE 5% BASED BUDGET INCREASE FOR
US TO BE ABLE TO MEET THAT 8000
AND TAKE CARE OF THOSE STUDENTS
AS WELL AS THE NONRESIDENT
REPLACEMENT FUNDING THAT THE
GOVERNOR HAS PROPOSED FOR THE
UNIVERSITY. THANK YOU VERY MUCH
FOR YOUR TIME TODAY, AND I'M I'M
AVAILABLE FOR QUESTIONS. OKAY
THANK YOU. ABSOLUTELY SOME
QUESTIONS. HAVE SOME, MR FONG.
THANK YOU SO MUCH, MR CHAIR AND
THANK YOU SO MUCH TO EVERYONE
KNOWS THE PANELISTS HERE TODAY.
IN TERMS OF THE èC ENROLLMENT.
IT'S BEEN A VERY BIG PRIORITY
FOR OUR COMMITTEE AND FOR, UM,
BUDGETS UP TO COMMITTEE, SO IT'S
GOOD TO HEAR THAT 8000 NEW
CALIFORNIA. ADMIT EASE, BUT WE
KNOW THAT THE IMPACT THE
CAMPUSES OF UCLA, A DIEGO èC,
BERKELEY. THEN WHEN THERE'S
STILL MORE WORK TO BE DONE TO
ENROLL MORE CALIFORNIA STUDENTS
. WHAT ARE SOME OF THOSE PLANS
TO ENROLL MORE CALIFORNIA
STUDENTS AT THOSE HIGHLY
IMPACTED CAMPUSES? THE PLANS FOR
BERKELEY L A AND SAN DIEGO
INCLUDE THE REPLACEMENT OF
NONRESIDENT STUDENTS IN ORDER TO
BRING THE NONRESIDENT STUDENT
RATIO TO 18% OF THE
UNDERGRADUATE POPULATION. THAT'S
ONE PLAN. UM THE OTHER PLANS
INCLUDE ADDING STUDENT HOUSING
AT BERKELEY AND SAN DIEGO IN
ORDER TO ACCOMMODATE MORE
STUDENTS. U C L A JUST ADDED
3500 NEW STUDENT HOUSING BEDS
FOR UNDERGRADUATES, SO THEY'RE
DOING WELL IN THAT PROMISE OF,
UM STUDENT HOUSING. AND THE
PLANTS ALSO HAVE TO INCLUDE
STEADY HIRING FACULTY, WHICH WE
ARE ABLE TO DO WITH BOTH THE 5%
BASED BUDGET INCREASE AS
PROPOSED BY THE GOVERNOR, WHICH
WILL ACCOMMODATE ABOUT 2000
ADDITIONAL STUDENTS ANNUALLY IF
WE CONTINUE TO RECEIVE THAT, 5%
UM AND THE, UH, FUNDING WE
RECEIVED FROM THE LEGISLATURE
AND THE CURRENT YEAR, THE $51
MILLION IS BEING USED IN PART TO
HIRE FACULTY, UH, TO THAT WILL
BE ABLE TO TEACH THE STUDENTS
THAT WILL BE ARRIVING. THANK YOU
SO MUCH FOR THAT CONTEXT, AND
WHEN WE LOOK AT THE HIRING OF
FACULTY, WE WANT TO MAKE SURE
THAT REFLECTS THE DIVERSITY OF
CALIFORNIA AS WELL THAT
SOMETIMES VERY CRITICAL TO THE
FUTURE OF OUR HIGHER EDUCATION
SYSTEM AND GOING FORWARD AND OUR
COMMITTEE AS WELL AND PRESSURE.
THE COMMITTEE MEMBERS HERE AS
WELL, UM, IN TERMS OF THE
STUDENT HOUSING PIECE WE HEARD,
UM SOME OF THE SHIFT IN
FINANCING FOR THE CAPITAL
STUDENT HOUSING PROJECTS. HOW
DOES THAT AFFECT THE TIMELINE
FOR THESE PROJECTS? THE SHIFT IN
FUNDING SHOULD NOT IMPACT. THE
TIMELINE ARE FURTHER
CONSTRUCTION. UH AT U C. WE WILL
BE ABLE TO SELL THE BONDS WHEN
NEEDED. UM THE THINGS THAT ARE
IMPACTING THE TIMELINE FOR THE
PROJECTS CURRENTLY HAVE TO DO
WITH COMMUNITY LAWSUITS AGAINST
SOME PROJECTS. AND, UM THE
REDESIGN OF ONE OF THE PROJECTS
THAT SAN DIEGO IS, UM, IMPACTING
THE TIMELINE A BIT FOR THOSE
AFFORDABLE BEDS. BUT FOR THE, UM
PROPOSED PROJECTS OR ONGOING. UM
THE SHIFT IN FUNDING WILL NOT
IMPACT THAT. UNFORTUNATELY WE
DON'T HAVE THAT MUCH MONEY LEFT
FOR THE èC PORTION THERE, SO WE
HAVE TO PICK ONE OF THE SIX
PROJECTS THAT HAS BEEN PROPOSED.
AND I BELIEVE THIS COMMITTEE
WILL PICK THAT FOR US, BUT IT
WILL NOT IMPACT THE CONSTRUCTION
TIMELINE. THANK YOU SO MUCH FOR
THAT CONTEXT AS WELL. AND FOR
THAT UPDATE, YOU KNOW FOR THE
STUDENT HOUSING GRANT PROGRAM
AND THE STUDENT. STUDENT HOUSING
REVOLVING LOAN FUND, THE $901 IN
THE REVOLVING LOAN FUND IN THE
$2015 ON THE GROUND TO KNOW IT'S
A OUR BUDGET SCENARIO HAS
WORSENED SINCE FEBRUARY, BUT I
KNOW THAT STUDENT HOUSING FOR US
TO MEET THE TARGET GOALS TO
REALLY MAKE SURE THAT WE'RE
SERVING CALIFORNIA STUDENTS IS
SO CRITICAL TO REALLY MAKING
SURE WE GET THIS HOUSING
PROGRAMS OFF THE GROUND AND THAT
ARE SO READY THAT ARE READY TO
GO. SO REALLY WANNA AMPLIFY
THOSE SUPPORTS FURTHER THE
STUDENT HOUSING GRANT FUNDS. AH
REALLY MAKE SURE THAT WE'RE
CONTINUING TO AMPLIFY THAT
CONVERSATION. UM AND LASTLY, IN
TERMS OF THE IN ROMAN PICTURE.
8000 STUDENTS IN TERMS OF THE
FUTURE PROJECTIONS. DO WE HAVE
ANY FUTURE PROJECTIONS AS TO
BEYOND 8000? YES THE UNIVERSITY
OF CALIFORNIA UM, WILL ENROLL
APPROXIMATELY 2000 ADDITIONAL
STUDENTS ANNUALLY UNDER THE
GOVERNOR'S COMPACT SO IN AFTER
IN BUDGET YEAR, PLUS ONE WE PLAN
TO ENROLL ANOTHER 2000,
CALIFORNIA UNDERGRADUATES IF WE
RECEIVED THE 5% INTENDED FOR
THAT YEAR, SO THOSE 5% INCREASES
WILL HELP SUPPORT A 1% ANNUAL
INCREASE IN CALIFORNIA
UNDERGRADUATES. UM WE ALSO HAVE
THE 2030 PLAN BY WHICH, UM BY
2030. WE INTEND TO INCREASE
CAMPUS ENROLLMENTS BY OVER
17,000, CALIFORNIA
UNDERGRADUATES. UM AND, UH, ALSO
INTEND TO INCREASE GRADUATE
STUDENT ENROLLMENT DURING THAT
TIME PERIOD. THANK YOU FOR THE
CONTEXT WAS WE CONTINUE TO LOOK
AT HOW WE RAMP UP TO MEET THE
TARGETS TO REALLY MAKE SURE THAT
WE'RE SERVING CALIFORNIA
STUDENTS. GOING FORWARD. SO
THANK YOU FOR THAT CONTEXT AND
THEN IN TERMS OF THE STUDENT
HOUSING PIECE, THAT'S SOMETHING
THAT WE'RE GONNA CONTINUE
AMPLIFY AND SUPPORT IN TERMS OF
THE NEEDS OF MEETING THE HOUSING
CRISIS HERE IN CALIFORNIA FOR
OUR STUDENTS IN OUR èC SYSTEM.
THANK YOU SO MUCH, MR CHAIR.
OKAY. THANK YOU SO MUCH. MY
REMARKS WITCHY. THANK YOU VERY
MUCH, MR MISS BURTON. AND I WANT
TO THANK YOU. FOR WHAT SOUNDS TO
ME LIKE, UH, GOOD NEWS THAT, UH
, I WANT TO THANK PRESIDENT DR
DRAKE AND THE UNIVERSITY OF
CALIFORNIA FOR HEARING. UH THIS
COMMITTEE LOUD AND CLEAR THAT WE
WANT TO ADMIT MORE CALIFORNIA
RESIDENTS. UH UNDERGRADUATES SO
THAT WE CAN EXTEND THE PRIVILEGE
AND THE OPPORTUNITY FOR OUR
CALIFORNIA KIDS. AH TO, UH, TO
ATTEND OUR GREAT UNIVERSITY OF
CALIFORNIA SYSTEM. UM I, UH I
WANTED TO SEE IF THERE WAS A
BREAKDOWN BY CAMPUS IN TERMS OF
THE INCREASE IN $8000 8000
STUDENTS, UH, THAT BY FALL OF
2023. I DON'T HAVE THE BREAKDOWN
WITH ME RIGHT NOW. WE'RE WE'RE
STILL MAKING SOME OFFERS ON THE
WAIT LIST. BUT WE DID ASK EVERY
SINGLE CAMPUS TO INCREASE. UM
THE AMOUNT OF STUDENTS THAT THEY
WERE ADMITTING. NOW THE LARGEST
AMOUNT OF ADMITS WOULD BE AT L.
A RIVERSIDE AND SAN DIEGO. SO
TWO OF THE VERY SELECTIVE
CAMPUSES WILL BE ADMITTING MANY
OF THE STUDENTS. AND SO THE
PROCESS UM IS TO EXTEND AN OFFER
TO MORE STUDENTS THAT ARE
CURRENTLY ON THE WAITLIST. IS
THAT CORRECT? UH THAT'S CORRECT
. SO IN TERMS OF US
COMMUNICATING THIS NEWS TO OUR
CONSTITUENTS, IF THEY GOT A
REJECTION, THEY SHOULD NOT BE,
UH, EXPECTING ANY
RECONSIDERATION. LET ME DOUBLE
CHECK ON THAT. OR YOU ALL RIGHT.
THANK YOU, UM AND SO THE 8000.
AND ROMAN INCREASE FOR
CALIFORNIA RESIDENTS BY FALL OF
2023 IS THAT ON TOP OF THE 2000
ANNUAL INCREASE PURSUANT TO THE
COMPACT THAT INCLUDES THE 2000
FROM THE COMPACT, UM SO, SO IT'S
AN INCREASE FROM THE PREVIOUS
FROM THE EXISTING COMPACT OF
6000 STUDENTS IN IS THAT
CORRECT? IT'S AN INCREASE OVER
THE 4200 THAT WE WERE PLANNING
ON ENROLLING EARLIER IN THE YEAR
, SO IN JANUARY, WE HAD A PLAN
TO ENROLL 4200 STUDENTS FOR FALL
OF THIS COMING FALL. NOW WE'RE
INCREASING THAT PLAN TO ABOUT
8000 STUDENTS, AND THAT INCLUDES
THE 4700 STUDENTS THAT THE
LEGISLATURE WANTED US TO ENROLL
, PLUS THE 2000 FROM THE
COMPACT. AND THEN A QUESTION IF
I MAY PIVOT TO, UH, MR KLEIN
WITH WITH THE L A. OH, UM YOU
TALKED ABOUT HOW THE A B 94 BOND
FINANCING. UM AH MECHANISM WOULD
. DOUBLE THE TOTAL COSTS BECAUSE
OF THE INTEREST PAYMENTS IS THAT
, UH, UM, DID I HEAR YOU?
CORRECT CORRECT. UH BUT GIVEN
THE CIRCUMSTANCES WITH, UM THE,
UM. INCREASE IN THE OVERALL
STATE BUDGET DEFICIT. UM UH,
WITH THE L. A S ESTIMATE THAT
IT'S EVEN WORSE THAN WHAT THE
GOVERNOR IS, IS, UH, PROJECTING
, UM, IS THE L. A RECOMMENDING
THAT THIS A B 94? UH UM. PROCESS
IS THE WISER COURSE OF ACTION AS
THE GOVERNOR IS PROPOSING. WE
THINK AT THIS TIME THERE ARE
CERTAIN PROJECTS THAT WOULD MEET
THE SPECIFICATIONS FOR MOVING
FORWARD WITH THESE TYPES OF
PROJECTS. WHAT ONE OF THOSE
PROJECTS AS MENTIONED WOULD BE
THAT èC RIVERSIDE PROJECT WHERE
THERE IS A CLEAR NEED THAT HAS
BEEN ILLUSTRATED. AND THAT WOULD
BE ADDRESSED BY USING THIS
FUNDING MECHANISM. THERE ARE
OTHER PROJECTS WHERE THERE ARE
OTHER ITEMS THAT WOULD BE WORTH
CONSIDERING WHETHER OR NOT IT
WOULD BE APPROPRIATE TO MOVE
FORWARD WITH THEM. AND THOSE
INCLUDE THOSE THE U. C. BERKELEY
PROJECT, HOWEVER, THAT U. C
MERCED PROJECT IS ONE WHERE WE
WOULD EVEN IRRESPECTIVE OF ANY
FUNDING MECHANISM WE WOULD
RECOMMEND AGAINST MOVING FORWARD
WITH AT THIS TIME. DOES THE
UNIVERSITY OF CALIFORNIA HAVE A
RESPONSE TO THE U. C. MERCED UH
, RECOMMENDATION. THANK YOU FOR
THE OPPORTUNITY TO RESPOND. UM
THE U. C. MERCED PROJECT WILL
ALLOW FOR NEW CLASSROOMS AND
FACULTY OFFICE SPACE THAT WILL
ALLOW THAT CAMPUS TO START
OFFERING NEW MAJORS. AND WE
THINK THAT BY OFFERING NEW
MAJORS, WE CAN ATTRACT MORE
STUDENTS TO THE CAMPUS. THIS IS
REALLY THEIR SECOND PHASE OF
GROWTH. WHERE THAT CAMPUS, UM
THAT BUILDING WILL SUPPORT THE
CAMPUS GROWING BY ANOTHER 5000
STUDENTS. THIS IS THE START OF
THAT PHASE BY OFFERING THOSE NEW
MAJORS, SO WE THINK THAT EVEN
THOUGH IT APPEARS THAT THE
CAMPUS IS DOING FINE AT ITS
CURRENT CAPACITY, WE WANT èC
MERCED TO GROW BEYOND THAT
10,000 STUDENT MARK AND BY
BUILDING THIS CLASSROOM
BUILDING. WE THINK THEY CAN GET
THERE. AND OFFER MORE MAJORS
THAT WILL BE ATTRACTIVE TO
STUDENTS IN THE CENTRAL VALLEY.
ALL RIGHT. THANK YOU, MR CHAIR.
OKAY, MR ALVAREZ. THANK YOU ALL
FOR THE UPDATE. APPRECIATE IT,
UM HAVE QUESTIONS ABOUT THE NEW
REQUESTED EXPENDITURES, UH U C,
RIVERSIDE SCHOOL MEDICINE AND
THE GLOBAL ENTREPRENEURS. IS
THERE MORE INFORMATION OUTSIDE
OF WHAT'S PROVIDED IN THE
LETTERS ABOUT THESE TWO PROGRAMS
AND WHAT THE FUNDING WOULD
ACCOMPLISH. I CAN BRIEFLY SPEAK
ABOUT THAT. U C RIVERSIDE
MEDICAL SCHOOL PROJECT.
BASICALLY THIS FUNDING IS TO
SUPPORT. UH, THE OPERATION COSTS
AND ROMAN GROWTH AND SUPPORT THE
SCHOOL. IN THE AREA IN ROMAN
GROWTH OF HOW HOW MUCH WE DON'T
PROVIDE A SPECIFIC MOSTLY IS TO
SUPPORT THE THIS SCHOOL TO
CONTINUE INCREASING THE
STUDENTS, AND THIS IS ALSO PART
OF THE 2022 BUDGET ACT. OKAY IF
YOU COULD PROVIDE FURTHER
INFORMATION ON THE EXPECTED
GROWTH, THAT WOULD BE, UM
APPRECIATE IT. SER YES COMMENT
ON THE UC RIVERSIDE SCHOOL OF
MEDICINE GROWTH. THEY JUST, UM,
THE LEGISLATURE PROVIDED FUNDING
FOR A NEW BUILDING THAT WILL
ALLOW THEM TO GROW BY 125
STUDENTS ANNUALLY SO THAT THE
WHOLE GROWTH OF 500 STUDENTS, UM
AND THEY ARE NOW STARTING TO
RAMP UP THOSE STUDENTS. THIS, UM
$2 MILLION REPRESENTS A 5%
INCREASE THAT THEY'RE OPERATING
BUDGET. THAT THE SCHOOL THINKS
WITH NECESSARY FOR THEM TO BE
ABLE TO FULLY SUPPORT THOSE
STUDENTS. SO IS IT A 5% INCREASE
IN THE NUMBER OF STUDENTS BEING
ADMITTED TO THE MEDICAL SCHOOL?
NO IT'S MORE THAN IT'S MORE THAN
THAT. YEAH. HOW MANY? HOW WHAT'S
THE PERCENTAGE OF INCREASED
NUMBER OF MEDICAL STUDENTS? I
DON'T REMEMBER THAT OFF THE TOP
OF MY HEAD. I'LL HAVE TO GET IT
FOR YOU. THANK YOU. AND I THINK
THE BUILDING IS STILL NOT
CONSTRUCTED IS THAT CORRECT THAT
THE BUILDING IS DONE COMPLETED?
IT IS DONE. YES THEY'RE
EXPECTING A NEW CLASS THIS FALL.
RIGHT. THANK YOU. UM AND THE
GLOBAL ENTREPRENEURS PROGRAM. UM
BIG PICTURE I'M TALKING ABOUT
THE PROJECT IS TO SUPPORT
FOREIGN BORN, YOU SEE,
ASSOCIATED INDIVIDUALS. THIS
COULD BE STUDENTS. THIS COULD BE
FACULTY THAT THEY WANT TO BECOME
ENTREPRENEURS, AND THEY
TYPICALLY DON'T QUALIFY FOR
GRANTS DO TO THEIR STATUS. THIS
UM, PROPOSAL AIMS TO HELP THEM
WITH THEIR IMMIGRATION STATUS,
BUT ALSO SUPPORT THE CREATION IN
FOSTER GLOBAL TALENT FOR
INNOVATION. SO ITS CURRENT èC
STUDENTS CORRECT èC ASSOCIATED
INDIVIDUALS, SO THIS COULD ALSO
BE FACULTY. AND STUDENTS. AND
THIS PROGRAM WOULD ALLOW THEM TO
APPLY FOR GRANTS FOR THEIR
RESEARCH OR ENTREPRENEURIAL,
ENTREPRENEURIAL PROJECTS. SO
THAT COULD BE A PROFESSIONAL
LICENSE OR STARTING A BUSINESS.
UM SO A LOT OF THESE INDIVIDUALS
DON'T QUALIFY FOR FEDERAL
GRANTS, AND THIS WILL BE A WAY
TO SUPPORT THEM CONTINUED TO BE
IN THE COUNTRY AND PROVIDER.
DOUBLE ENRICHMENT. WHERE WOULD
THIS BE HOUSED ON THE CAMPUS?
SAYS UM, STILL IN DEVELOPMENT,
BUT I'M HAPPY, UM, TO TAKE YOUR
FEEDBACK. WHAT ABOUT THE U? C? L
A. I HAVE TWO QUESTIONS ON U. C.
L A ONE IS THE CURRENT NEW
REQUEST OF $5 MILLION UM, AND
THE OTHER IS ON THE PRIOR
REQUEST. AND I DON'T REMEMBER
THE FIGURE. BUT I HAVE TO SAY IT
WAS PROBABLY 100 MILLION OR MORE
FOR CENTER. UM THAT WAS IN THE
ORIGINAL BUDGET THAT'S STILL
REMAINS IN THE BUDGET, SO TO
SPEAK ABOUT THE RAUNCHY BUNCH
PROGRAM, SO THAT IS THE TO
PROVIDE SUPPORT TO INCREASE THE
AFRICAN AMERICAN STUDIES STILL
RECORDED IN THE LAST HEARINGS.
WE HEAR A LOT ABOUT THE NEED TO
INCREASE DIVERSITY. SO WE HOPE
THAT THIS SUPPORT WILL HELP BACK
STUDENTS TO GETTING THIS SUPPORT
IN THE CENTER AS THE CENTER
PROVIDES RESEARCH ACADEMICS
FELLOWSHIP OPPORTUNITIES, SO
THAT'S PART OF THE ONE TIME
INVESTMENT. I THINK ON THE OTHER
PART YOU REFERRED TO THE U. C L,
A IMMUNOLOGY. ANYONE OF THERAPY
CONTINUED TO BE THE SAME AS THE
GOVERNOR'S BUDGET PROPOSAL. WAS
THAT PROPOSAL AMOUNT FOR SO IT
WAS A 2022 BUDGET UP, AND IT
PROVIDES 100 MILLION THIS YEAR
AND THEN 300 MILLION ON THE
FOLLOWING, UM, BUDGET ACT. I'M
SORRY, BUT THE YEAR I BELIEVE,
UM, I KNOW I HAD QUESTIONS. I
BELIEVE WHETHER OTHER COLLEAGUES
HAD QUESTIONS ABOUT WHERE, UM
THIS PROPOSAL CAME FROM AND WHAT
WAS WHERE THIS WAS NOT ON THE
LIST OF UH, PROJECTS THAT THE
èC HAD SUBMITTED AS PRIORITY
PROJECTS. OR CAPITAL PROJECTS. I
THINK THIS WAS PART OF THE 2022
BUDGET AT WHAT WE'RE DOING
CURRENTLY SIMPLY CHANGING THE
FUNDING MECHANISM. IN THIS CASE
, UM, CHANGING THE TIMING THAT
THE WOOD PROVIDING THE FUNDING,
BUT OVERALL, IT'S PART OF THE 22
BUDGET ACT. AND IT'S TO CREATE A
TERMINAL IMMUNOLOGY AND MILITARY
API CENTER AT U. C L. A THE ONLY
HAVE COMMENTS ON THAT. SO AGAIN
FOR THE èC IMMUNOLOGY INSTITUTE
. IT WAS 100 MILLION IN 22 23
UNDER THE GOVERNOR'S BUDGET
PROPOSAL, 100 MILLION AND 23 24
300 MILLION IN 24 25 $500
MILLION AND ALL OF THE CONCERNS
THAT I THINK FOLKS, INCLUDING US
EXPRESSED IN JANUARY REMAIN IN
TERMS OF NOT HAVING MUCH DETAIL
ON THE BASICS OF THE PROPOSAL.
THIS THE CART THE SCHEDULE THE
SCOPE, THE OWNERSHIP, THE
RESEARCH THAT WOULD BE CONDUCTED
WITHIN IT, SO THEY MAY REVISE
DOESN'T CHANGE ANY OF THE
DETAILS OF THE PROPOSAL. JUST
GOING BACK FOR A MOMENT TO THE U
. C RIVERSIDE SCHOOL OF
MEDICINE. OUR UNDERSTANDING IS
THE AUGMENTATION BEFORE YOU IS
JUST TO COVER THINGS LIKE SALARY
INCREASES. IT'S JUST TO KEEP THE
SCHOOL, UM ABREAST OF
INFLATIONARY PRESSURES. IT'S NOT
TO DEAL WITH ENROLLMENT GROWTH.
THE STATE PROVIDED 25 MILLION
ONGOING A FEW YEARS AGO TO HELP
THE SCHOOL RAMP UP ITS
ENROLLMENT. NOW THE SCHOOL DOES
IMPLICITLY BENEFIT FROM THE 5%
BASED INCREASE. YOU MIGHT OFFER
THEM. IT JUST IT DOESN'T
BELIEVE, BECAUSE IT'S UH A
SMALLER PROGRAM WITHOUT A
TEACHING HOSPITAL. IT DOESN'T
HAVE THE SAME CLINICAL RESOURCES
AS OTHER HOSPITALS, SO IT'S IN A
DIFFERENT SITUATION. BUT JUST SO
THAT I THINK IS WHAT THE
PROPOSALS FOR US TO HELP THEM
COVER SALARY INCREASES AND OTHER
OPERATING COST INCREASES. UM AND
THEN ON THE. MAYBE L A AND
OTHERS COULD HELP ANSWER THE
QUESTION THROUGH BUDGET WE
APPROVE. PROJECTS THAT THEN IN
TURN TO DEBT SERVICE, LIKE THE
UC MERCED AND RIVERSIDE CAMPUS
EXPANSION PROJECTS. IS THAT DONE
ON A BUDGETARY, UH, DECISION ON
AN ANNUAL BASIS. UM NO. SO I
THINK THE DECISION BEFORE YOU
RIGHT NOW IS IF YOU WANT TO
RESCIND THE GENERAL FUND THAT
YOU HAVE PROVIDED FOR THOSE
PROJECTS OR THAT YOU WOULD
OTHERWISE PROVIDE OVER THE NEXT
FEW YEARS GIVE YOU SEE THE
AUTHORITY NOW TO GO OUT AND SELL
THE BONDS YOU'RE EFFECTIVELY
APPROVED. IF YOU YOU CAN CHOOSE
TO APPROVE THE PROJECTS, GIVE
THEM AUTHORITY TO SELL THE BONDS
. THE STATE WILL BE BEARING THE
DEBT SERVICE FOR THE NEXT 30
YEARS ON THOSE PROJECTS, BUT IT
WOULD BE FOR THESE TWO SPECIFIC
PROJECTS. UM YES, THE MAYOR
REVISION PROPOSAL BEFORE YOU IS
FOR THE UCR CAMPUS EXPANSION.
THE UC MERCED CAMPUS EXPANSION
THE COW, CLEAN ENERGY PROJECTS.
UM THE STUDENT HOUSING ALL OF
THAT WOULD BE CONVERTED TO DEBT.
SO AGAIN, THE STATE'S DEBT
BURDEN IS GONNA GO UP NOTABLY.
RIGHT? UM THIS IS NOT SPAWNED
FINANCING THAT REQUIRES VOTER
APPROVAL, THEN NO, THE STATE HAS
MADE A SORT OF EXCEPTION FOR èC
NCSU UNDER STATE LAW TO ALLOW
THEM TO SELL UNIVERSITY BONDS.
THEY DON'T HAVE TO GO TO THE
VOTERS FOR THOSE PURPOSES. THANK
YOU VERY MUCH. YES GOOD
QUESTIONS THERE, MR ALVAREZ, UM
, BEYOND THAT, LAST ONE. YOU
KNOW THAT'S A TRADEOFF. IF YOU
ASK. YOU SEE, AND YOU SEE A
REVERSE ITEM OR SAID YOU WANT
THIS PROJECT? THEY SAID, SURE.
LIKE BUT WE'RE GOING TO PUT IT
ON THE CREDIT CARD. IT'S GOING
TO COST DOUBLE WHAT IT WOULD BE
HAVING PLAYING IN GENERAL PHONE
KIND OF SHRUGGED THEIR SHOULDERS
AND SAY, OKAY, WE'LL STILL TAKE
THE PROJECT, SO THAT'S ON US.
THAT'S A POLICY CHOICE THAT
WE'RE MAKING. AND YOU KNOW, WE
THINK THESE ARE WORTHY
INVESTMENTS. IF YOU WANT TO
EXPAND ENROLLMENT LIKE YOU JUST
TALKED ABOUT UM, YOU SEE, WE'RE
SAD AND RIVERSIDE ARE BIG PIECES
PIECE OF THE PUZZLE TO MAKE SURE
WE CAN. EXPAND CAPACITY, SO YOU
KNOW, IT'S ONE OF THESE THINGS
WHERE I'D PREFER THAT WE DID
WHAT WE DID LAST YEAR WITH ONE
TIME MONEYS, BUT ONE TIME THINGS
IN A DIFFERENT WORLD NOW, SO I
DON'T WANT THESE PROJECTS TO GO
BACK. SO YOU KNOW, I THINK YOU
KNOW ALL THINGS BEING RECALL.
THIS IS THE BEST WE CAN GET FOR
THAT. I DO WANT TO TALK MORE
ABOUT THE DEBT SERVICE IDEA. FOR
UM, THAT THE HOUSING UM AND
THESE ARE THIS IS FOR THE GRANT
. I'LL GET TO THE LOAN PROGRAM
IN A SECOND. SO I HEAR THAT YOU
SEE, SAID FINE. THAT'S FINE.
WE'LL TAKE IT. WE'LL TAKE THE
WHATEVER IT IS. I'M SURE THERE'S
A FORMULA FOR EVERY $100 MILLION
. YOU PAY. EXCELLENT YOU TO
COVER YOUR DEBT SERVICE FOR 30
YEARS. UM I GUESS A COUPLE OF
QUESTIONS IS WE ALWAYS HEARD
THAT THERE'S A LIMITED DEBT
CAPACITY, WHICH IS WHY WE CAME
UP WITH THIS IDEA IN THE FIRST
PLACE BECAUSE èC CHANCELLORS.
AS YOU KNOW, UM, WE'VE BEEN
TALKING TO FOR YEARS AND WE HAD
THIS KIND OF EPIPHANY THREE
YEARS AGO WITH UM, SOMEONE
MEMBER TING MYSELF SKINNER AND
FORGET WHO THE OTHER SENATOR WAS
AT THE TIME WITH SOME CHANCES
TALKING ABOUT HEY, MAYBE THE
STATE COULD COME IN AND HELP US
FINANCE SOME OF THESE HOUSING
PROJECTS BECAUSE WE HAVE LIMITED
CAPACITY ON OUR OWN BOOKS. AND
SO THIS KIND OF UNDERCUTS THAT,
SO I GUESS IT'S NOT A PROBLEM.
YOU'RE SAYING THAT IT'S NOT AN
ISSUE. ON THE OVERALL èC DEBT
CAPACITY. UM CURRENT STATE LAW
LIMITS, UH, USES A B 94 DECK
CAPACITY TO 15% OF OUR STATE
GENERAL FUND ANNUAL
APPROPRIATION. SO YOU'RE TALKING
ABOUT SHIFTING OVER $900 MILLION
ONTO OUR A B 94? THAT LEAVES US
WITH ABOUT $300 MILLION LEFT OR
OTHER PROJECTS AFTER THE SHIFT,
SO WE'RE GETTING PUSHED CLOSE TO
THAT 15% WERE THE LEGISLATURE IN
A FUTURE YEAR TO HAVE TO CUT THE
UNIVERSITY DRAMATICALLY. SAY IF
YOU HAVE IF WE HAVE ANOTHER DOWN
BUDGET YEAR WHERE WE HAVE
RECEIVED A BIG CUT THAT MIGHT
IMPACT YOU KNOW THAT DEBT
SERVICE IS NOT GOING AWAY. WE
HAVE TO COVER FIRST. IT MIGHT
PUSH DOWN THAT 15% AND PUT US
INTO TROUBLE. SO THAT'S A
DISCUSSION FOR A FUTURE YEAR,
HOPING THAT THERE IS NO SUCH
CUT. SURE. BUT YEAH, WE CAN
ABSORB IT NOW, BUT IT DOES MEAN
THAT FUTURE CLASSROOM PROJECTS
AND OTHER PROJECTS ARE GOING TO
BE MUCH MORE LIMITED. WE DO HAVE
YOU KNOW ABOUT $6 BILLION IN
DEFERRED MAINTENANCE THAT WE YOU
KNOW, HAVE NEED FOR WE HAVE $12
BILLION A SEISMIC RENOVATIONS ON
OUR CAMPUSES. UM, A LOT OF THOSE
WILL BE PUSHED DOWN INTO FUTURE
YEARS UNTIL WE CAN ISSUE MORE.
DEATH AGAIN. OKAY? AND THEN HOW
DOES THIS IMPACT THE TIMING OF
DELIVERING THESE PROJECTS,
WHEREAS ONE WE WOULD HAVE YOU
WOULD HAVE TO CHECK IN YOUR
HAND. YOU KNOW, UNTIL I WON
SEVERAL 100 MILLION FOR THIS AND
THIS YOU HAVE TO, YOU KNOW, DO
THE BONDS AND DIED. YOU KNOW,
DOWN THE ROAD. SO HOW DOES THIS
FOCUS. WALK ME THROUGH HOW THIS
IMPACTS DELIVERY THESE PROJECTS
SO FOR STUDENT HOUSING BECAUSE
THE FUNDING WAS ALREADY
APPROPRIATED. ONE TIME FRIENDS
ARE PREFERABLE FROM THE STATE.
UM THIS DOESN'T IMPACT THE
TIMING. IT JUST MEANS WE HAVE TO
GO BACK TO SOME, UH OF THE
CONSTRUCTION VENDORS AND JUST
MAKE CERTAIN THAT WE HAVE
APPROPRIATE MECHANISMS IN PLACE
TO SHIFT THE FUNDING TO THIS NEW
FUNDING SOURCE. UM WE HAVE
PEOPLE WHO CAN TAKE CARE OF THAT
RELATIVELY SEAMLESSLY, SO WE
DON'T THINK IT WILL SLOW DOWN
ANY OF THE STUDENT HOUSING
PROJECTS. OR THE PROJECTS AT
MERCED RIVERSIDE IN BERKELEY
THAT THE GOVERNOR WAS PROPOSING
TO DELAY. UM THIS ACTUALLY
ALLOWS US TO CONSTRUCT THOSE
PROJECTS FASTER THAN IF THEY
WERE DELAYED TO FUTURE YEARS.
CORRECT YEAH, THAT'S GOOD NEWS
THERE AND THEN, UM, ON THIS THE
GRANT PROGRAM WE HAD THOSE JOINT
COMMUNITY COLLEGE. YOU SEE
PROJECTS THE COMMUNITY COLLEGES
MADE ENGINEERS IN A LITTLE BIT.
BUT DOES THIS HAVE ANY IMPACT ON
DELIVERING THOSE? PROJECTS. SO
WE ONLY HAVE MONEY FOR ONE
PROJECT UNDER THIS PROPOSAL, SO
, YES, IT DOES IMPACT THE JOINT
PROJECTS AND THAT WE'D HAVE TO
PICK BETWEEN THEM. OR MAYBE THE
LEGISLATURE WANTS TO PICK A NON
JOINT PROJECT FOR YOU SEE, I
DON'T WANT TO MAKE THAT DECISION
OR TRY TO FORCE IT ON YOU. UM
WHAT IT DOES MEAN IF FOR TWO èC
COMPONENT OF THOSE OTHER
PROJECTS. WE CAN STILL MOVE
FORWARD WITH THEM, BUT THE èC
HAVE WOULD NOT BE AFFORDABLE
BEDS OR THEY WOULD NOT BE AT
THIS AFFORDABLE RATE AS
PRESCRIBED BY THE HIGHER
EDUCATION STUDENT HOUSING GRANT
PROGRAM. WE'D BE ISSUING THEM AT
LEAST REVENUE BONDS, MEANING WE
HAVE TO CHARGE THE STUDENTS TO
FULL RATE, THE COVER THE DEATH
SERVICE AND THE OPERATIONS SO
THERE WOULD STILL BE MORE
HOUSING STOCK. BUT IT JUST WOULD
NOT BE, UM AT THIS VERY
AFFORDABLE RATE. YEAH OKAY. UM
AND THEN, JUST LASTLY, JUST
COMMENTARY THAT THE THERE WAS AN
ACTION IN HERE FOR THE REVOLVING
LOAN FUND, WHICH WAS SUPPOSED TO
HAVE 900 MILLION IN THIS YEAR
AND 900 MILLION AGAIN IN BUDGET
YOUR PLUS ONE UM, THAT CONTINUES
TO BE A TOP PRIORITY OF THE
COMMITTEE, BUT ALSO THE ASSEMBLY
AND, YOU KNOW, WE UNDERSTAND THE
GOVERNOR AND THE ARCHITECTURE
AND MAKE SOME TOUGH CHOICES WITH
THE WITH THE SPENDING GAP
INCREASING BY NINE BILLION, BUT
THIS IS SOMETHING THAT WE ARE
WORKING TO TRY TO MAKE A REALITY
BECAUSE WE KNOW IF WE'RE GOING
TO GET TO THE NUMBER ONE ISSUE
WE TALKED ABOUT EARLIER
ENROLLMENT GROWTH. WE NEED THIS
STUDENT HOUSING. TO AH TO GET
THERE. SO STAY TUNED FOR THAT.
BUT WE WILL BE WORKING, OF
COURSE WITH THE ADMINISTRATION
AND HOPE TO COME TO A CONCLUSION
THAT ALLOWS US TO NOT DELAY THE
STUDENT HOUSING REVOLVING LOAN
FUND AS MR FONG SAID, BUT, UM
LET'S START THAT AND LAUNCH
THAT. I THINK IT'S JUST A GREAT
OPPORTUNITY FOR THE FUTURE. WE
HAVE ONE TIME MONEY MARKET IN
THERE. YOU GET JOBS. YOU GET
INFRASTRUCTURE. YOU GET HOUSING
AND ROME ARE STUDENTS AND THEN
HEY, WHEN YOU SEE STARTS PAYING
IT BACK, YOU CAN RECIRCULATE
THAT IN YEARS TO COME SO GIFT
THAT KEEPS GIVING. LASTLY ON THE
ENROLLMENT. UM THAT'S GREAT NEWS
AS MR FONG AND MURATSUCHI SAID,
UM, I WILL NOTE THAT THE 8000.
IT'S A IT'S A BIG NUMBER. BUT
REMEMBER LAST YEAR PRETTY MUCH
WE DIDN'T HAVE ANYTHING. SO THIS
THIS, UM, FOCUS ON THAT. PLUS
THIS 8000 NUMBER, I THINK, UM,
IS PART OF OUR FIVE YEAR
IMPLEMENTATION OF THE
NONRESIDENT SWAP, SO IT'S NOT
JUST NEW. IT'S KIND OF THE SWAP.
SO WHEN YOU LOOK AT APPLES TO
APPLES, UM THIS IS UM UH,
SLIGHTLY MORE THAN WE WOULD HAVE
HOPED PER YEAR GOING FORWARD
OVER THE YEARS, BUT GREAT NEWS
AND WE WANT TO KEEP IT GOING. WE
DON'T WANT THESE UPS AND DOWNS.
I KNOW THAT YOU SEE HER LIKE,
HEY, THAT'S WHY WE WANT THIS
COMPACT ALLOWS SAB STABILITY,
BUT WE WERE IN THE PANDEMIC,
THINGS CHANGE. BUT HAVING THESE
UPS AND DOWNS, I DON'T THINK IT
IS, UM, HELPFUL. IT LEADS TO
FRUSTRATION, NOT TO MENTION MORE
REJECTION LETTERS FOR AMAZINGLY
QUALIFIED, UM, STUDENTS. UM SO I
THINK WE WERE LOOKING AT WHAT?
WHAT WE CAN DO TO HAVE A
MINIMUM. AND UM, IF YOU IF YOU
OVERREACHED, WE'LL, YOU KNOW,
WE'LL GIVE YOU A BIT MORE. TRY
TO THINK OF THE BASKETBALL
ANALOGY. I KNOW YOUR LAKERS FANS
OVER HERE, SO IT'S KIND OF LIKE
THE WARRIORS, SAYING JORDAN'S
POOL NEXT YEAR IN THE PLAYOFFS,
ADDITIONAL SCORING 20 POINTS A
GAME DURING THE YEAR. MAKE SOME
SHOTS IN THE PLAYOFFS, SCORE
SOME POINTS THAT WILL GIVE YOU A
BONUS ON TOP OF YOUR BASE SALARY
. SO WHAT WE WANT TO DO HERE IS
A SIMILAR TYPE THING TO HAVE THE
THRESHOLD. UH ENROLLMENT AND IF
YOU OVER DELIVER, WE WILL GIVE
YOU WE WILL MAKE SURE WE SETTLE
UP AND PAY FOR THAT, UM
ACCORDINGLY. UM. ANY FURTHER
QUESTIONS AND YOU SEE SEEING
NONE. LET'S MOVE ON TO CSU.
THANK YOU. THANK YOU FOR YOUR
TIME.
OKAY THANK YOU. D O F L O. C S U
I THINK YOUR MIKE ISSUE HERE.
PARDON ME. GOOD AFTERNOON, MR
CHAIR MEMBERS, JENNIFER LOUIS
WITH THE DEPARTMENT OF FINANCE.
THEY MAY REVISION FOR THE
CALIFORNIA STATE UNIVERSITY
REFLECTS THE CONTINUED SUPPORT
OF THE MULTIYEAR COMPACT AS
MENTIONED BY MY COLLEAGUE AND
THE OVERVIEW OF HIGHER EDUCATION
, WITH AN ONGOING BASED
AUGMENTATION REMAINING UNCHANGED
SINCE GOVERNOR'S BUDGET THERE
MAY REVENGE INCLUDES
AUGMENTATIONS TO THE BUDGET YEAR
AND GENERAL FUND REVERSION
SHIFTS IN BOTH THE PAST YEAR AND
CURRENT YEAR PROJECTS TO BE
FINANCED. THROUGH THE JOB ON
DEBT SERVICE FOR 21 22, THE ONE
TIME JOURNAL FUND REVERSION TO
DEBT SERVICE FINANCING INCLUDES
THE CAL POLY HUMBLE
INFRASTRUCTURE PROJECTS OF
201,000,001 TIME GENERAL FUND
AND A CORRESPONDING INCREASE OF
16 MILLION ONGOING JOURNAL FUNDS
. STARTING IN THE 23 24 BUDGET
YEAR TO SUPPORT THE DEBT SERVICE
, FOLLOWED BY A 22 23 CURRENT
YEAR, ONE TIME GENERAL FUND
ADJUSTMENT. TO WITHDRAW THE
PROPOSAL OF 75,000,001 TIME
GENERAL FUND FOR UNIVERSITY
FARMS TO DEBT SERVICE FINANCING
, THUS ADJUSTING THE CSU CAPITAL
OUTLAY SHIFT OR 22, 23 TO 329
POINT 8,000,001 TIME GENERAL
FUND TO SUPPORT SUCH DEBT
SERVICE FINANCING. THEY MAY
REVISION ALSO INCLUDES A SHIFT
IN FINANCING FOR THE CSU,
AFFORDABLE STUDENT HOUSING GRANT
AND APPROXIMATELY TOTAL OF 655
MILLION IN CURRENT AND PLANNED
SUPPORT FOR AFFORDABLE HOUSING
AND AN ACCOMPANYING INCREASE OF
23 24 OF 45 MILLION ONGOING
GENERAL FUND TO SUPPORT THE DEBT
SERVICE. FINANCING MY COLLEAGUE
MICHELE NGUYEN FINANCE WHO
OVERSEES A HIGHER EDUCATION
STUDENT HOUSING GRANT PROGRAM,
WILL PROVIDE FURTHER DETAILS ON
THIS INITIATIVE. DURING HER
PRESENTATION. LASTLY THE MAY
REVISION INCLUDES 3.1 MILLION
ONGOING GENRE FUNDS FOR THE
CONSTRUCTION OF THE HUMAN
IDENTIFICATION LABORATORY AT
CSU. CHEECH GO WITH THE TOTAL
ONGOING GENERAL FUND COMMITMENT
TOWARDS CSU DEBT SERVICE
TOTALING 91.1 MILLION WITH THAT
. I'M HAPPY TO ANSWER ANY
QUESTIONS YOU MAY HAVE ABOUT THE
ME REVISION FOR THE CALIFORNIA
STATE UNIVERSITY AND I WILL PASS
OFF THE PRESENTATION TO MY
FINANCE CALLING MICHELLE NGUYEN
REGARDING THIS. YES, YOU
AFFORDABLE STUDENT HOUSING
GRANT. THANK YOU. AFTERNOON
AGAIN. JARED MEMBERS MISSION ONE
WITH THE DEPARTMENT OF FINANCE.
I'LL KEEP MY REMARKS VERY BRIEF,
BECAUSE, UM, THIS WAS DISCUSSED
IN THE èC PORTION AS AS WAS
JUST MENTIONED. THE MAYOR
REVISION PROPOSES STRUCTURAL
CHANGES TO THE EDUCATION STUDENT
HOUSING GRANT PROGRAM. UH MAJOR
REVISION PROPOSES TO SHIFT THE
CURRENT AND PLANNED GENERAL
FUND. SUPPORT OF APPROXIMATELY
655 MILLION FOR, UH, THE
CALIFORNIA STATE UNIVERSITY
UNDER THIS PROGRAM TO NOW BE
FUNDED BY CSU ISSUED BONDS. IN
ADDITION TO MAY. REVISION
PROPOSES 45 MILLION ONGOING
GENERAL FUND TO SUPPORT THE
UNDERLYING DEBT SERVICE. UH FOR
THESE CSU ISSUE BONDS. AH IN
ADDITION, THE MAY REVISION
PROPOSES 450,000,001 TIME
GENERAL FUND FOR 2023 24 95
POINT 4,000,001 TIME GENERAL
FUND FOR 24 25 FOR AFFORDABLE
STUDENT HOUSING PROJECTS FOR THE
COMMUNITY COLLEGES. UM AS WAS
MENTIONED FOR THE STUDENT
HOUSING REVOLVING LOAN PROGRAM,
MAY REVISION PROPOSES NO CHANGES
BEYOND WHAT WAS PROPOSED THAT
THE GOVERNOR'S BUDGET AND WITH
THAT HAPPY TO TAKE ANY QUESTIONS
YOU HAVE. OKAY. THANK YOU. NEXT,
PLEASE. STICKING WITH THE L A.
OH, THERE IS SIGNIFICANT OVERLAP
BETWEEN THE ISSUES AND THE CSC
ITEM AND THE ISSUES IN THE èC
ITEMS, SO I'LL TRY TO BE BRIEF.
AS WITH YOU SEE THE LARGEST
PROPOSAL AT THE MAYOR VISION FOR
CSU AFFECTS THE FINANCING
APPROACH FOR STUDENT HOUSING.
THE APPROACH WOULD BE CHANGED
FROM CASH FUNDING TO DEBT
FINANCING THROUGH UNIVERSITY
BONDS. THE SAME ASSESSMENT WE
DISCUSSED FOR THE PREVIOUS ISSUE
APPLIES HERE. THERE'S A SIMILAR
PROPOSAL. IT'S CSU THAT WOULD
SHIFT A PORTION OF PREVIOUSLY
APPROVED CASH FUNDING FOR THE
CAL POLY HUMBOLDT CAPITAL
PROJECTS FROM CASH TO DEBT
FINANCING THROUGH UNIVERSITY
BONDS. GIVEN THAT THIS APPROACH
WOULD SIGNIFICANTLY INCREASE THE
COST OF THESE PROJECTS, YOU
COULD CONSIDER THIS TIME WHETHER
THESE PROJECTS REMAIN AMONG YOUR
HIGHEST BUDGET PRIORITIES. IF
SO, YOU COULD MOVE FORWARD WITH
THAT FINANCING THEM AS THE
GOVERNOR HAS PROPOSED. IF NOT,
YOU COULD CONSIDER INSTEAD
SCALING BACK STATE SUPPORT FOR
THEM. THERE IS ONE NEW
DISCRETIONARY PROPOSAL IN THE
MIRROR VISION FOR CSU. AND
THAT'S 3.1 MILLION ON GOING TO
THAT FINANCE THE CSU CHICO HUMAN
IDENTIFICATION LAB. AS MY
COLLEAGUES NOTED OUR OVERARCHING
GUIDANCE GIVEN THE STATE BUDGET
CONDITION THIS YEAR. IS TO
REJECT ANY NEW PROPOSALS UNLESS
THEY ADDRESS IMMEDIATE HEALTH
AND SAFETY CONCERNS. SINCE THIS
PARTICULAR PROPOSAL DOESN'T MEAN
THAT HIGH THRESHOLD WE WOULD
RECOMMEND REJECTING IT. THANK
YOU HAPPY TO TAKE ANY QUESTIONS.
OKAY THANK YOU. CSU. ALL RIGHT.
GOOD AFTERNOON, CHAIR AND
MEMBERS. I'M RYAN STORM. I'M THE
ASSISTANT VICE CHANCELLOR FOR
BUDGET FOR THE UNIVERSITY
SYSTEM. CSU IS GRATEFUL FOR THE
ONGOING SUPPORT OF OUR 23
CAMPUSES AS THE MAY REVISION
CONTINUES TO HONOR MULTIYEAR
COMMITMENT TO INCREASE BASE
FUNDING BY $227 MILLION. NOW
YOU'RE PAST CURRENT AND FUTURE
SUPPORT OF OUR MOST CRITICAL AND
FUNDAMENTAL PRIORITIES INCLUDE
STUDENT SUCCESS ENROLLMENT
GROWTH. EMPLOYEE COMPENSATION.
FACILITIES AND INFRASTRUCTURE AS
WELL AS BASIC NEEDS. AND THAT
HAS BEEN AND WILL CONTINUE TO BE
ESSENTIAL AND DEEPLY APPRECIATED
AS WELL. WE RECOGNIZE THE
SIGNIFICANT REVENUE DECLINES IN
THE GENERAL FUND. THE STATUS
SPACING IS CURRENTLY FACING, AND
THAT WILL REQUIRE SOME TOUGH
DECISIONS BY THIS BODY. WE, TOO
HAVE SOME CHALLENGING CHOICES TO
MAKE FOR THIS UPCOMING YEAR. WE
WILL HAVE TO PRIORITIZE THE
PROPOSED $227 MILLION AS IT DOES
NOT FULLY COVER. THE CSU'S
PROJECTED ONGOING OPERATING
COSTS AS CONFIRMED BY THE
LEGISLATIVE ANALYST'S OFFICE IN
THEIR ANALYSIS. SO GIVEN THE
CHALLENGES BOTH THE STATE AND
THE SEIZURE CURRENTLY FACING,
IT'S IMPORTANT TO NOTE THAT THE
CSU'S AVAILABLE FUNDING AND
BARGAINING UNIT EXPECTATIONS ARE
MISALIGNED. WE HAVE PRIORITIZED
A SIZABLE PORTION OF THE
PROPOSED BASE INCREASE TOWARD
WORKFORCE INVESTMENTS, INCLUDING
92 MILLION OF THAT COMPACT MONEY
FOR UM FACULTY AND STAFF
COMPENSATION POOL AS WELL AS $50
MILLION TOWARDS HEALTH CARE
PREMIUM INCREASES. THIS IS
NEARLY TWO THIRDS OF THE
PROPOSED FUNDING FOR THE
WORKFORCE INVESTMENTS OF THE
COMPACT HOWEVER, THE
EXPECTATIONS OF CSU BARGAINING
UNITS ARE EXTREMELY HIGH, AND,
UH, AS ARE THE ASSOCIATED COSTS
TO MEET THOSE EXPECTATIONS, SO
JUST WANTED TO PUT THAT TOPIC ON
THE RADAR AS WE MOVE INTO THE
NEXT YEAR. AS MENTIONED LAST
FRIDAY BY THE GOVERNOR. UH IF
SOMETHING IS A LEGISLATIVE
PRIORITY, ALL ENACTED
LEGISLATION WITH THE FISCAL
IMPLICATIONS WE BELIEVE SHOULD
BE FUNDED IN THE BUDGET TO ALLOW
FOR PROPER IMPLEMENTATION. AND
TO PREVENT ENCROACHMENT ON BASE
FUNDING. THE UNIVERSITY IS NOT
IN A POSITION, UH, TO BE ABLE TO
SIMPLY REDIRECT FUNDING TO NEW
PROGRAMS, REQUIREMENTS THAT WITH
ANY UNFUNDED LEGISLATION AND
WITH INCREASED OPERATING COSTS
DUE TO INFLATION, RISING HEALTH
CARE PREMIUMS LIKE I MENTIONED
AND COMPENSATION DEMANDS CAREFUL
CONSIDERATION OF HOW ADDITIONAL
UNFUNDED UM, LEGISLATION AFFECTS
THE OVERALL SYSTEM WILL ALLOW US
TO REMAIN COMPETITIVE IN
ATTRACTING AND IN ATTRACTING AND
RETAINING OUR HIGH QUALITY
PERSONNEL AND MAINTAINING THE
QUALITY OF HER ACADEMIC
PROGRAMS. I WANT TO REITERATE
THE CSU'S SINCERE APPRECIATION
FOR THE FUNDING INCREASE
PROPOSED IN JANUARY AND
SUSTAINED IN THE MAY REVISION
AND IN TERMS OF THE FUNDING
SHIFTS, AS DESCRIBED, UH, THE
POLY HUMBLED AS WELL AS A NUMBER
OF THE CAMPUS PROJECTS AND THE
STUDENT HOUSING. WE HAVE THE
SAME SORT OF COMMENTS THAT
DOVETAIL IN WITH WHAT THE
UNIVERSITY OF CALIFORNIA
SUGGESTED. WE DON'T ANTICIPATE
ANY DELAY IN ANY OTHER PROJECTS.
IT'S SIMPLY A CHANGING OF THE
COLOR OF MONEY, SO TO SPEAK.
MANY OF THESE PROJECTS ARE IN
THE PRELIMINARY PLAN AND WORKING
DRAWING PHASE. UM AND SO WE ARE
MOVING ALONG ON THOSE, SO WE
DON'T ANTICIPATE ANY CHANGE. I
THINK ONE THING TO NOTE. IS THAT
LIKE YOU SEE, WE WOULD IN THE
EVENT THAT INTEREST RATES DO
BECOME MORE PROBLEMATIC OVER
TIME. AH AND IF THIS ANTICIPATED
DEBT SERVICE LEVEL, UM, THAT THE
ADMINISTRATION HAS PROPOSED IS
INSUFFICIENT, WE WOULD HOPE THAT
YOU'D BE OPEN TO FUTURE
DISCUSSIONS ABOUT MAKING
TECHNICAL ADJUSTMENTS TO THE
BASE BUDGET SO THAT WE CAN MAKE
SURE THAT THOSE PROJECTS ARE
FULLY COVERED AS YOU
ANTICIPATED. AND WITH THAT HAPPY
TO TAKE ANY QUESTIONS. OKAY
THANK YOU. SIMON MEMBER ALVAREZ.
JUST ONE QUESTION ON THE CHICO
PROJECT. UM MAYBE TO THE CSU
SYSTEM. UM WAS THAT PROJECT ON
THE LIST OF UM OF CAPITAL
PROJECTS PRIOR THAT A NEW
PROJECT YOU TELL ME MORE ABOUT
THAT PROJECT IN PARTICULAR. SURE
LAST YEAR THE HUMAN EYE D LAB
WAS A PROJECT THAT, UM WAS
FAIRLY NEW TO THE SCENE WOULD
HAVE BEEN, UH, THAT SOME SUPPORT
IN THE LEGISLATURE LAST YEAR IN
THE FINAL BUDGET AGREEMENT. THAT
PARTICULAR PROJECT DID NOT WAS
NOT ADDED. UM SINCE THAT TIME,
THAT PROJECT HAS BEEN PLACED ON
THE FIVE YEAR CAPITAL PLAN FOR
THE UNIT FOR THE CAL STATE
UNIVERSITY CHICO CAMPUS. IT IS.
IT'S NUMBER THREE PRIORITY RIGHT
NOW BEHIND BASIC INFRASTRUCTURE
. UH VERY SIGNIFICANT INCREASE.
VERY SIGNIFICANT, UM,
REPLACEMENT OF AN ACADEMIC
FACILITY ACADEMIC BUILDING. AND
THEN THE HUMANOID LAB IS NUMBER
THREE ON THE LIST THERE. THANK
YOU VERY MUCH. QUESTIONS, MR
PARKER. THANK YOU SO MUCH, MR
CHAIR, AND THANK YOU. CSU FOR
THE PRESENTATION. QUICK QUICK
QUESTION ON THE ENROLLMENT
PROJECTIONS. FOR 23 24. CAN WE
GET A QUICK UPDATE ON
ENROLLMENT, PLEASE? SURE IF
YOU'LL RECALL WE WERE IN THAT
VERY TINY HEARING ROOM WHERE
WE'RE ALL SITTING RIGHT NEXT TO
EACH OTHER AT THAT POINT, MY
COLLEAGUE DR NATHAN EVANS
MENTIONED THAT LAST FALL. WE HAD
ANTICIPATED THAT OUR ENROLLMENT
WOULD BE ABOUT, UH, 7% UNDER THE
FUNDED TARGET AT THE CONCLUSION
OF THIS, UH, THIS ACADEMIC YEAR.
WE'RE HAPPY TO REPORT THAT
HEARING THAT THAT WE WERE ALL AT
THAT THE THAT THINGS HAVE
ACTUALLY TURNED AROUND. AND WE
ARE NOW IMPROVED ON OUR
ENROLLMENT FOR THE CURRENT YEAR.
WE ANTICIPATE THAT IT WILL BE,
UH ONLY 5.6 BELOW ARE FUNDED
TARGET SINCE THAT TIME, IT'S
BEEN ABOUT A MONTH OR SO THERE
HAS BEEN NO REAL SIGNIFICANT
CHANGE SIMPLY BECAUSE OF THE
TIME OF THAT HEARING. WE HAD A
VERY GOOD SENSE OF WHAT SPRING
ENROLLMENTS WERE SO SINCE THAT
TIME, IT WAS JUST BEEN VERY
SMALL, FINE TUNING, SO WE'RE A
LITTLE UNDER TARGET AT THE
MOMENT. UM BUT WERE IMPROVED
BASED ON WHAT OUR FORECAST WAS
LAST FALL, SO THAT'S GOOD NEWS
SO FAR. THANK YOU FOR THE
UPDATE, AND IN TERMS OF THE
COMMITTEE, COLLEGE TRANSFER
RATES, OR WE'VE SEEN PARTICULAR
DISTRICTS THAT ARE FEEDING INTO
VARIOUS CAMPUSES MORE OR THAT'S
MORE OF A CASE BY CASE BASIS. I
THINK THAT SOME MORE ON A CASE
BY CASE BASIS I DON'T HAVE THE
INFORMATION HANDY. OKAY THANK
YOU. THANK YOU FOR THE UPDATE
THAT THE SHIFT IN FINANCING UH,
FOR THESE PROJECTS. WE OUGHT TO
CONTINUE TO JUST WANT TO GET MY
COMMENTS FROM EARLIER AS WELL
FOR THE U. C SYSTEM. WE NEED TO
CONTINUE LOOKING, AND WE ARE
SUSTAINED STUDENT HOUSING
PROJECTS AND PROPOSALS GOING
FORWARD AS WELL AND LOOKING HOW
WE CAN EXPAND THOSE
OPPORTUNITIES FOR OUR STUDENTS
AS WELL. I THINK IT WAS THE
CHAIR. OKAY. THANK YOU. UM YEAH
. YOU KIND OF MENTIONED THIS IN
YOUR OVERVIEW ALREADY. SOME
MAYBE ANALOGY SIMILAR TO WHAT WE
HEARD WITH, SAY, HALF FROM FROM
FROM YOU SI. UM WITH THIS 80 94
POLICY. WE, OF COURSE, PICK DEBT
SERVICE AND YOU HAVE YOUR OWN
DEBT CAPACITY. HOW CLOSE ARE WE
THERE TO THE LIMIT. AND WHAT?
WHAT IS THIS, YOU KNOW, PUT US
IN RELATION TO THAT. YES, WE
HAVE A WE HAVE QUITE A BIT OF
ROOM IN OUR IN OUR STATUTORY
LIMITATION WHEN THAT LAW WAS
PAST IT WAS BROKEN UP AND IT
ACTUALLY THERE WERE TWO
DIFFERENT LAWS. FIRST THE èC
LAW WAS IT WAS AN ACTIVE. MAYBE
94 ESTABLISHED THAT 15% CAP, SO
TO SPEAK. THIS UNIT. CSU'S CAP A
YEAR LATER WAS CAPPED AT 12. IN
THE HISTORY BEHIND THAT IN
BRIEF, IS THAT ESSENTIALLY,
THAT'S WHAT THE CARRYING LOAD OF
UNIVERSITIES WAS AT THE TIME AND
SO THAT WAS WHAT WAS IN
IMPLEMENTED IN LAW. BUT IN TERMS
OF OUR LOAD RIGHT NOW WE'RE
HOVERING AROUND 5% SO WE STILL
HAVE A LOT OF CAPACITY. BUT THE
SAME COMMENTS APPLY WITH AS YOU
SEE IF THERE IS IN THE FUTURE, A
MAJOR BUDGET REDUCTION WE COULD
RUN INTO THAT ROOM. YOUR THING,
TOO, COULD BE CONSIDERED WOULD
BE TO PROACTIVELY RAISING THOSE
CAPS IN THE EVENT OF NEED TO
MAXIMIZE THOSE IN THE FUTURE.
YOU KNOW THAT RAISES ANOTHER
ISSUE FOR THE HOUSING AND THE
SAME COMMENTS HERE. THIS IS A
PRIORITY, SO WE'RE GOING TO THE
WORKING TO INCLUDE THE MONEY FOR
THE FOR THE REVOLVING FUND. BUT
IF YOU'RE AT 5% WE HEAR FROM CSU
CAMPUSES QUITE OFTEN THAT YOU
KNOW THEY HAVE A HOUSING STUDENT
HOUSING SUPPLY DEMAND IMBALANCE
, AND YOU KNOW, IT'S A GOOD
BUSINESS PROPOSITION. STUDENTS
ARE THERE THEY COME THERE EVERY
YEAR. UM, YOU KNOW, WE KNOW THEY
CAN FILL THOSE. SO WHY AREN'T
YOU USING MORE OF YOUR OWN
MONEY? IF YOUR WAY UNDER THE 15%
TO BOND TO FINANCE STUDENT
HOUSING PROJECTS ON YOUR OWN.
SURE THE WAY THAT IT HAS
HISTORICALLY WORKED. AS FOR
DECADES, WE HAVE HAD THE BONDING
AUTHORITY TO ISSUE DEBT FOR
STUDENT HOUSING FOREVER. THE
DIFFERENCE IN THE STATUTE TODAY
IS THAT IT'S VERY SPECIFIC ABOUT
ANY STATE APPROPRIATION THAT'S
USED TO PAY THE BONDS ON
PARTICULAR PROJECTS. WITH
STUDENT HOUSING BEING OUTSIDE OF
YEAH, OUTSIDE OF THE GENERAL
FUND, THE APPROPRIATION. IT
HASN'T EVER BEEN A FACTOR. SO
THAT NOW THAT NOW THE QUESTION
IS, IF YOU CHANGE THAT AND HAVE
THE BACKSTOP, RIGHT, RIGHT, I
CAN'T RECALL. I'M NOT WRITING
ABILITY HERE. BUT LIKE COULD YOU
DO THAT, TOO LIKE YOU COULD AND
WE THAT IT WOULD NOT BE THE
GUARANTEE, BUT IT WOULD BE THE
BACKSTOP IF YOU DON'T GET THE
RENT PAYMENTS. FOR EXAMPLE, ONE
OF THE THINGS THAT WAS DONE IN
LAST YEAR'S BUDGET ACT WAS
EXPLICIT EXEMPTION FROM
EDUCATION CODE. THAT ANY OF
THESE ONE TIME PROJECTS AT THE
TIME WOULD COUNT TOWARDS THOSE
CAPS. BOTH THAT YOU SEE AND IT'S
CSU. AND SO WHAT WAS WRITTEN IN
EACH ONE OF THOSE PROJECTS IN
THE IN THE BUDGET ACT WAS, IT
WAS EXEMPT FROM ED EXEMPT FROM
THE CAP. SO THAT ALLOWED FOR YOU
TO USE TO INVEST MORE ONE TIME
MONEY. USE THAT MONEY IN OUR
APPROPRIATION AND NOT COUNT
AGAINST OUR CAT. SAME COULD BE
APPLIED THIS YEAR. I CAN'T
RECALL OFF THE TOP OF MY HEAD IF
THAT ACTUALLY HAS BEEN PROPOSED
BY THE ADMINISTRATION. THERE MAY
REVISION THAT WOULD BE A REALLY
GOOD MOVE IN TERMS OF KEEPING
THAT THRESHOLD WHERE IT IS BY
JUST EXEMPTING THESE ADDITIONAL
PROJECTS THAT ARE SLATED FOR THE
SWAP OF FUNDING, OKAY? THANK
YOU. THAT'S IT. FURTHER
QUESTIONS. I THINK, NAN THANK
YOU ALL THESE ISSUES OPEN. SEE
YOU NEXT WEEK. COMMUNITY
COLLEGES.
OKAY WELL, THE GOVERNMENT OF
FINANCE L A. OH, AND THEN OUR
COMMUNITY COLLEGES. OKAY? GOOD
AFTERNOON SHARING MEMBERS.
MADISON SHEFFIELD DEPARTMENT OF
FINANCE AS MY COLLEAGUES
DISCUSSED IN THE OVERVIEW, THE
MEMBER VISION INCLUDES
ADDITIONAL REDUCTIONS TO THE
OVERALL BUDGET AND THUS EACH
BUDGET SEGMENT. HMM THREE. THAT
BEING SAID, JUST LIKE AT THE
GOVERNOR'S BUDGET, THE
ADMINISTRATION REMAINS COMMITTED
TO THE SECOND YEAR OF THE MULTI
YEAR ROADMAP. AND THE MAYOR.
VISION CONTINUES TO FULLY
SUPPORT COMMUNITY COLLEGE
APPORTIONMENT DESPITE THE
NECESSARY TO MAKE NECESSITY TO
MAKE REDUCTIONS IN SOME AREAS.
I'LL WALK THROUGH SOME OF THE
NOTABLE CHANGES INCLUDED IN THE
GOVERNOR'S MAYOR, VISION.
PROPOSITION. 98 THE MAYOR.
VISION PROPOSES 12.3 BILLION IN
LOCAL ASSISTANCE, FUNDING FOR
COMMUNITY COLLEGES AND ADULT
EDUCATION IN 23 24. THIS IS A
REDUCTION OF OR DECREASE OF
APPROXIMATELY 258 MILLION FROM
THE GOVERNOR'S BUDGET. PROJECTED
THE TOTAL COMPUTATIONAL REVENUE
FOR THE STUDENT CENTERED FUNDING
FORMULA OF ABOUT 9.4 BILLION IN
23 24 INCREASE OF 398 MILLION
OVER THE 23 24 S E F F. WE HAVE
REJECTED AT THE GOVERNOR'S
BUDGET. INCLUDED IN THIS
INCREASE FROM THE GOVERNOR'S
BUDGET TO MAYOR VISION IS AN
INCREASE OF 25.4 MILLION ONGOING
PROPOSITION 98 GENERAL FUND. TO
REFLECT A CHANGE IN THE COLA
FROM 8.13% 8.22. AND A DECREASE
OF APPROXIMATELY 2.4 MILLION
ONGOING PROPOSITION 98 GENERAL
FUND NEEDED TO SUSTAIN THE
980.5% ENROLLMENT GROWTH. TO
ALIGN WITH REVISED ESTIMATES AND
ENROLLMENT IN 23 24. FOR
REFERENCE. THE K 12 SIDE HAS THE
SAME COLA PERCENTAGE. IN
ADDITION, THE MAYOR VISION
INCLUDES AN INCREASE OF THREE
MILLION ONGOING PROP 98 GENERAL
FUND TO FUND THE 8.22% COLA FOR
THE SAME SELECT CATEGORICAL
PROGRAMS THAT ARE INCLUDED AT
THE GOVERNOR'S BUDGET. AS A
RESULT OF A DECREASE IN THE
PROJECTED OVERALLS AND OFTEN
REVENUE THE PROP. TOTAL PROP 98
GUARANTEE DECLINED. IN DECLINE
COMPARED TO THE GOVERNMENT'S
BUDGET BY APPROXIMATELY TWO
BILLION. OF WHICH 503 MILLION IS
THE PROPORTIONAL REDUCTION TO
THE COMMUNITY COLLEGES BUDGET
THE MIRROR VISION PROPOSES TO
FULLY FUND APPORTIONMENT AT THE
NEW COLA, DESPITE THE NECESSITY
TO MAKE THIS OVERALL REDUCTION
YEAH, IT'S THE COMMUNITY
COLLEGES BUDGET. THIS IS DONE BY
SHIFTING ONE TIME RESOURCES TO
SUPPORT THE APPORTIONMENT IN 23
24. AND OUT YEARS WILL BE
CONSIDERED DURING THE NEXT
BUDGET CYCLE WITH A NEW REVENUE
PICTURE. THE 503 MILLION IN
APPORTIONMENT BACKFILL IS
SUPPORTED BY PRIOR YEARS
APPORTIONMENT SAVINGS REDUCTION
TO COVID 19 RECOVERY BLOCK GRANT
AND REDUCTION TO THE THIRD
MAINTENANCE ALLOCATION. I'LL
GIVE IT A BIT MORE DETAIL ON
EACH OF THE REDUCTIONS I JUST
MENTIONED MAY THAT ARE MADE IN
ORDER TO SUPPORT THE SCF F IN
FULL. THE COVID 19 RECOVERY
BLOCK GRANT INCLUDE THE DECREASE
OF 345,000,001 TIME. PROP 90
GENERAL FUN BRINGING THE BLOCK
GRANT TOTAL TO 305,000,001 TIME
PROP MONEY GENERAL FUND. FOR
DIFFERENT MAINTENANCE. WE HAVE A
DECREASE OF APPROXIMATELY
239,000,001 TIME PREP MONEY
GENERAL FUND DIFFER FOR
DIFFERENT MAINTENANCE NEEDS FOR
A TOTAL REDUCTION OF 452,000,001
TIME. PROP 19 GENERAL FUND WHEN
COMBINED WITH THE REDUCTION
PROPOSED THAT THE GOVERNOR'S
BUDGET. WE ALSO HAVE INCLUDED IN
THE REVISION DECREASE OF 100
MILLION PROP 98 GENERAL FUND IN
PROPOSED SUPPORT FOR COMMUNITY
COLLEGE EFFORTS AND FOCUS
STRATEGIES TO INCREASE STUDENT
RETENTION AND ROLL RATES AND
ENROLLMENT, BRINGING THE
GOVERNOR'S BUDGET PROPOSAL TO
100 MILLION SO ESSENTIALLY
CUTTING IN HALF. WE ALSO
INCLUDED A DECREASE OF
50,000,001 TIME PROPAGATING
GENERAL FUND FOR THE STUDENT
SUCCESS AND COMPLETION GRANT
PROGRAM. TO REFLECT REVISED
PROGRAM PARTICIPATION ESTIMATES
, BRINGING THE CUMULATIVE 23 24
SUPPORT FOR THIS PROGRAM. TO
APPROXIMATELY 362.6 MILLION PROP
98 GENERAL FUND. YOU ALSO SEE AN
INCREASE OF 10,000,001 TIME PROP
19 GENERAL FUND PER YEAR FOR
THREE YEARS TO SUPPORT THE LGBT
Q PLUS PILOT PROJECT. THIS
BUILDS UPON THE 2021 BUDGETARY
INVESTMENT OF 10,000,001 TIME
PROP 98 GENERAL FUND. AND
INCLUDES PROVISIONAL LANGUAGE
REFERENCING THAT BUDGET ACT
INVESTMENT. NOTING A AN ERROR IN
THE PAGES THAT MENTION THAT IT
WAS ONLY FOR A COMMUNITY COLLEGE
DISTRICT. WE ALSO HAVE AN
INCREASE OF TWO POINT 5,000,001
TIME PROP 98 GENERAL FUND FOR
THE SMALL BUSINESS
ENTREPRENEURSHIP AND INNOVATION
CENTER AT EAST LOS ANGELES
COLLEGE. MIRROR VISION ALSO
PROPOSES STATUTORY CHANGES TO
ALLOW COMMUNITY COLLEGE JUST ALL
COMMUNITY COLLEGE DISTRICTS TO
SPEND FLEXIBLY AMONG THE
FOLLOWING SPECIFIED PEDAGOGICAL
PROGRAMS BEGINNING IN 23 24.
THOSE PROGRAMS ARE THE STUDENT
EQUITY AND ACHIEVEMENT PROGRAM,
STUDENT FINANCIAL AID
ADMINISTRATION AND STUDENT
MENTAL HEALTH SERVICES. PROPOSED
STATUTORY CHANGES, WHICH
STIPULATED THAT AFTER FIVE YEARS
, THE CHANCELLOR'S OFFICE WOULD
ASSESS DISTRICT LEVEL PROGRESS
IN MEETING FIVE OF THE ROADMAP
GOALS AS SELECTED BY THE
CHANCELLOR'S OFFICE. DISTRICTS
THAT ARE NOT MAKING SUFFICIENT
PROGRESS TOWARDS THE ROADMAP
GOALS WILL HAVE THEIR FLEXIBLE
SPENDING AUTHORITY REVOKED AND
BE OFFERED TECHNICAL ASSISTANCE.
AND THE LANGUAGE ALSO PROVIDES
THE CHANCELLOR'S OFFICE.
SPENDING THREAT AUTHORITY TO
ALIGN REPORTING REQUIREMENTS. IN
ADDITION, THE MAYOR VISION
PROPOSED STATUTORY CHANGES TO
CLARIFY ELIGIBLE USES OF FUNDING
FOR THE COMMUNITY COLLEGES.
STRONG WORKFORCE PROGRAM
FUNDING. AND THIS CLARIFY THIS.
THE OUR UNDERSTANDING IS THAT
THIS IS A STEP THAT WHAT IS
STIPULATED IN THE PROPOSED
LANGUAGE IS ALREADY PERMITTED BY
CURRENT LAW, BUT WE WANTED TO
PROVIDE ADDITIONAL SIGNALING TO
DISTRICTS THAT THIS WORK IS
PERMITTED. I'LL NOTE TO CAPITOL
OUTLAY PROJECTS BEYOND THE
CONTINUATION OF EXISTING
PROJECTS. WE HAVE 3.1 MILLION
PROPOSITION 51 GENERAL
OBLIGATION FUNDS FOR THE DESIGN
OF COAST COMMUNITY COLLEGE
DISTRICT GOLDEN WEST COLLEGE
FINE ARTS RENOVATION. AND SAN
MATEO COMMUNITY COLLEGE
DISTRICTS COLLEGE OF SAN MATEO,
BUILDING A LIBRARY SORRY LIBRARY
OR DISEASE, ROBERT LIBRARY
MODERNIZATION. THAT CONCLUDES MY
OVERVIEW OF THE NOTABLE
PROPOSALS FOR THE COMMITTEE,
COLLEGE SYSTEM AND MERIT VISION.
TURN IT OVER TO MY COLLEAGUE
MICHELE DISCUSSED MAYOR VISION
STUDENT HOUSING PROPOSALS FOR
THE COMMUNITY COLLEGES AND HAPPY
TO TAKE ANY QUESTIONS
REPRESENTATION AFTER THAT. OKAY.
THANK YOU. PLEASE PROCEED. GOOD
AFTERNOON AGAIN. MR CHAIR
MEMBERS. MICHELLE KNEW IN WITH
THE DEPARTMENT OF FINANCE. I'LL
GO QUICKLY AGAIN, UH, FOR THE
HIGHER EDUCATION, STUDENT
HOUSING GRANT PROGRAM. AS YOU
KNOW, UH, THE MAY REVISION
PROPOSES TO SHIFT CURRENT AND
PLANNED GENERAL OFFENSE SUPPORT
FOR THE UC AND CSU UNDER THIS
PROGRAM TO NOW BE FUNDED WITH UC
AND CSU ISSUED BONDS. AH IN
ADDITION, A REVISION DOES
CONTINUE TO PROPOSE GENERAL FUND
FOR THIS PROGRAM FOR THE
COMMUNITY COLLEGES SHARE OF THE
PROGRAM SPECIFICALLY, THE MAY
REVISION FOR THAT SHARE THE
MAYOR. REVISION PROPOSES OR
150,000,001 TIME GENERAL FUND
FOR 2023 24 95 POINT 4,000,001
TIME GENERAL PHONE FOR 2024 25.
FOR AFFORDABLE STUDENT HOUSING
PROJECTS. THE SOME OF THE OF THE
AMOUNTS ACROSS THESE TWO YEARS
REFLECT THE REMAINING AMOUNT
ALLOCATED FOR THE COMMUNITY
COLLEGES UNDER THIS PROGRAM. UM
AND AGAIN FOR THE STUDENT
HOUSING REVOLVING LOAN PROGRAM.
THE MAYOR VISION PROPOSES NO
CHANGES BEYOND WHAT WAS PROPOSED
THAT THE GOVERNOR'S BUDGET HAPPY
TO TAKE ANY QUESTIONS THAT YOU
HAVE. OKAY. THANK YOU. HELLO.
POLLY. GOOD AFTERNOON, PAUL
STEEN HOUSING WITH THE ANALYST'S
OFFICE AS THE DEPARTMENT OF
FINANCE JUST MENTIONED AS AND AS
YOU WILL HEAR MUCH MORE DETAIL
TOMORROW IN PART SIX OF THE
AGENDA. ON PROPOSITION 98 MAY
REVISIONS ESTIMATE OF THE
PROPOSITION 98 MINIMUM GUARANTEE
, WHICH IS THE MAIN FUNDING
SOURCE FOR COMMUNITY COLLEGES
AND SCHOOLS. IS DOWN ABOUT $2
BILLION FROM THE GOVERNOR'S
BUDGET ACROSS THE BUDGET WINDOW.
IN THE LOWER MINIMUM GUARANTEE
IS BASED ON THE MAY REVISE
ESTIMATES OF STATE REVENUES
BEING DOWN BY OVER $6 BILLION
RELATIVE TO JANUARY. AS MY
COLLEAGUE, MS PATELLA NOTED IN
OUR OVERVIEW OVERVIEW REMARKS,
THE GOVERNORS MAY REVISION
REVENUES ARE MORE OPTIMISTIC
THAN OURS. WE THINK THEY'RE DOWN
EVEN MORE THAN THE $6 BILLION
BUT EVEN WITH THE RELATIVELY
OPTIMISTIC REVENUE FORECAST BY
THE GOVERNOR THAT MAY REVISION
CONTAINS A $503 MILLION
STRUCTURAL DEFICIT IN COMMUNITY
COLLEGE APPORTIONMENT FUNDING,
AND PORTIA MINTS ARE THE MAIN
FUNDING. UH SOURCE OF FUNDING
FOR THE COLLEGES. THEY'RE
GENERAL PURPOSE MONIES. AS
YOU'RE GOING TO HEAR IN PART SIX
OF THE AGENDA, THERE'S EVEN A
LARGER STRUCTURAL DEFICIT FOR 12
SCHOOLS AND THEIR LOCAL CONTROL
FUNDING FORMULA. THE MAIN REASON
WHY PORTION IT COSTS ARE SO HIGH
IS BECAUSE OF THE HISTORICALLY
HI COLA PROPOSED HERE IT MAY
REVISE THE 8.22. FOR THE BUDGET
YEAR THEY MAY REVISE, PROPOSES
TO COVER A PORTION. IT COSTS IN
PART BY USING MONEY THAT'S
ALREADY BEEN APPROPRIATED BY THE
LEGISLATURE. ALREADY BEN SENT
OUT TO THE DISTRICTS, ACTUALLY,
AND THAT'S FOR THE COVID 19
BLOCK GRANT AND DEFERRED
MAINTENANCE. AND THEN THE
CUTTING THAT MONEY THE MONEY
THAT THE COLLEGES HAVE ALREADY
RECEIVED NOW BECAUSE THOSE
INITIATIVES AND SOLUTIONS ARE
ONE TIME IN NATURE IN THE OUT
YEARS UNDER THE MAY REVISION,
APPORTIONMENT WOULD HAVE A
STRUCTURAL GAP. THE LEGISLATION
WOULD HAVE TO SOMEHOW ADDRESS
NEXT YEAR. GIVEN THE SITUATION
AND SIGNIFICANT RISKS AND
DOWNSIDE RISKS OF THE OF
REVENUES BE EVEN LOWER THAN MAY.
REVISION ESTIMATES. WE RECOMMEND
THE LEGISLATURE ADOPT A
DIFFERENT STARTING POINT TO THE
GOVERNOR'S THAT FUNDS BASELINE
COSTS AND SEEKS TO FUND
COMMUNITY COLLEGES IN A
SUSTAINABLE WAY. ADOPTING A 5.1%
COST OF LIVING ADJUSTMENT WOULD
BETTER ALIGN COSTS WITH
AVAILABLE ONGOING FUNDS, AND IN
SO DOING, THE LEGISLATURE COULD
AVOID MAKING REDUCTIONS TO THOSE
PREVIOUSLY AUTHORIZED
INITIATIVES. UH THE DEFERRED
MAINTENANCE IN THE COVID 19
BLOCK GRANT AND INCREASE THE
LIKELIHOOD THE STATE CAN FUND A
COLA AND OTHER PRIORITIES FOR
DISTRICTS IN THE OUT YEARS. SO
UNDER A BASELINE BUDGET APPROACH
. NO FUNDING WOULD BE PROVIDED
FOR NEWLY PROPOSED INITIATIVES
SO WE WOULD RECOMMEND THE
LEGISLATURE REJECT. FOR EXAMPLE
, ANOTHER ROUND OF FUNDING FOR
THE ENROLLMENT AND RETENTION
STRATEGIES INITIATIVE AT ANY
RATE AS THIS SUBCOMMITTEE HEARD
JUST A FEW WEEKS AGO. DISTRICTS
HAVE SUBSTANTIAL FUNDING
REMAINING FROM PRIOR STATE
ALLOCATIONS FOR THAT PURPOSE FOR
ENROLLMENT AND RETENTION. SO
APART FROM FUNDING THE MAY
REVISION PROPOSES FLEXIBILITY
FOR THREE CATEGORICAL PROGRAMS
THAT YOU JUST HEARD FROM THE
DEPARTMENT OF FINANCE. WE
RECOMMEND THE LEGISLATURE REJECT
THIS PROPOSAL, AS IT WOULD NOT
REALLY PROVIDE DISTRICTS WITH
MEANINGFUL FLEXIBILITY.
DISTRICTS FOR OUT, UH, DISTRICTS
, FOR EXAMPLE, ALREADY HAVE
FLEXIBILITIES CONSIDERABLE
FLEXIBILITY WITH THE STUDENT
EQUITY AND ACHIEVEMENT PROGRAM.
THEY CAN USE THAT MONEY AND
FLEXIBLE WAYS. IN ADDITION, THE
LEGISLATURE HAS AN INTEREST IN
ENSURING THAT DISTRICT SPEND
MONEY ON FINANCIAL AID SERVICES
AND MENTAL HEALTH SUPPORTS. WE
DON'T THINK IT WOULD BE A GOOD
IDEA FOR THE LEGISLATURE TO
GRANT FLEXIBILITY TO DISTRICTS
AND HAVE THEM PERHAPS SHIFT
MONEY FOR INTENDED FOR MENTAL
HEALTH FOR OTHER PURPOSES.
FINALLY ON STUDENT HOUSING. OF
COURSE, THE GOVERNOR'S PROPOSING
TO USE NON PROPOSITION 98
GENERAL FUND. 9 98 SIDE OF THE
OF THE HOUSE IS AN EVEN WORSE
SITUATION AND PROPOSITION 98.
WITH AN ESTIMATED 30 PLUS
BILLION DOLLAR BUDGET DEFICIT,
SO GIVEN THAT WE RECOMMEND THE
LEGISLATURE HOLD OFF THIS YEAR
ON MAKING A DECISION, WHETHER
IT'S APPROPRIATE OR NOT
APPROPRIATE FUNDS FOR STUDENT
HOUSING, REVISIT IT AS THE
GENERAL FUND CONDITION IMPROVES.
THANK YOU. THIS PARTY. UH GOOD
AFTERNOON CHAIR. MCCARTY MEMBERS
OF THE ASSEMBLY BUDGET
SUBCOMMITTEE TO LISETTE AVERETT
WITH THE CALIFORNIA COMMUNITY
COLLEGES. THANK YOU FOR THE
OPPORTUNITY TO SHARE OUR
PERSPECTIVE ON THE GOVERNOR'S
MAY REVISION. WANNA FIRST
APPRECIATE THE GOVERNOR'S
COMMITMENT TO THE ROADMAP FOR
THE FUTURE AND THE CONSISTENCY
AND SUPPORTING OUR EFFORTS FOR
STUDENT SUCCESS AND EQUITY IN
PARTICULAR. LENGTHY ITEMS AND
LOTS OF DISCUSSION POINTS, BUT I
WANT TO HIGHLIGHT JUST A FEW.
THE FIRST IS THE CALIFORNIA
HUMAN COLLEGES AND SUPPORT OF
THE PROVIDED COLA COLA PROVIDES
CORE SERVICES AND RESOURCES FOR
ALL ASPECTS OF THE CALIFORNIA
COLLEGES, OPERATIONS AND NEEDS,
INCLUDING STUDENT SUPPORTS AND
OTHER EFFORTS. THESE ARE
ESSENTIAL, UM AS THEY KEEP PACE
KEEP WITH PACE OF OPERATING
COSTS, BUT ALSO, UH, INFLATION
THAT ALSO SUPPORTS THE
INDIVIDUALS THAT SERVE OUR
COLLEGES AND CAMPUSES. UM WE
ALSO SEE THAT THIS IS IN
ALIGNMENT WITH THE COMMITMENTS
THAT WERE MADE IN THE ROADMAP
FOR THE FUTURE, SO WE DO THINK
THAT THAT ISN'T ESSENTIAL. UM IF
IT'S NOT FULLY PROVIDED
COMMUNITY COLLEGES DON'T HAVE AN
AUTOMATIC BACKFILL MECHANISM AND
SO THAT WOULD BE LOST PURCHASING
POWER THAT WE WOULD NOT HAVE A
GUARANTEE TO HAVE BACK AND SO
THAT IS VERY IMPORTANT TO US. WE
RECOGNIZE THAT THERE WERE SOME
TOUGH CHOICES TO MAKE IN THIS
BUDGET. UM AND WE WANT TO BE
PARTNERS WITH YOU AND THE
GOVERNOR AND THE LEGISLATURE TO
EXPLORE SOME SOLUTIONS THAT
COULD ENSURE THAT WE CAN SUSTAIN
SOME OF THE COMMITMENTS THAT
WERE MADE IN PRIOR YEARS, AND
THE EFFORTS THAT HAVE BEEN
FUNDED THROUGH THESE RESOURCES
FOR EXAMPLE, AROUND DEFERRED
MAINTENANCE, INSTRUCTIONAL
EQUIPMENT, AND WE HAVE NEARLY
5000 EFFORTS AND PROJECTS THAT
ARE ALREADY ON THE DOCKET TO
MOVE FORWARD. AND SO FOR THAT
REASON WE WOULD EXPLORE
CONVERSATION TO, UH, THINK ABOUT
A CASH DEFERRAL INSTEAD. SO THAT
WE DON'T HAVE TO SEE CUTS, UM TO
THOSE PROJECTS, AND WE RECOGNIZE
THAT THE STATE NEEDS TIME TO
BOUNCE BACK FROM ITS CURRENT
ECONOMIC CONDITIONS. BUT THAT
WOULD ALLOW THESE SUBSTANTIAL
INVESTMENTS IN MUCH LARGER
PROJECTS THAT ARE REALLY
BENEFICIAL TO THE HEALTH AND
SAFETY OF OUR CAMPUSES TO MOVE
FORWARD. WE ALSO SEE SOME
ALIGNMENT WITHIN THE COVID 19
BLOCK GRANITE ENROLLMENT THAT
COULD BE CROSS PURPOSES SO
REALLY CREATING LINKAGES BETWEEN
THOSE TWO AND, UM, TO MINIMIZE
THE IMPACT AND CUTS TO THAT AS
WELL. I WANT TO HIGHLIGHT OUR
STRONG SUPPORT FOR THE LANGUAGE
THAT'S BEEN INCLUDED FOR A
STRONG WORKFORCE PROGRAM. WE SEE
THIS AS A STUDENT CENTERED
EVOLUTION FOR THE STRONG
WORKFORCE. PROGRAM AS IT ALLOWS
COLLEGES TO REALLY, UH, GET
CLARITY ON LANGUAGE THAT MAY
ALREADY EXIST PROJECTS THAT
ALREADY MAY BE POSSIBLE. BUT
THAT ASSURANCE THAT IT IS
SOMETHING THAT THE STATE WANTS
TO SEE THEM. MOVE FORWARD. UH,
IT ALLOWS COLLEGES TO INVEST IN
WORK BASED LEARNING PROGRAMS
WORK EXPERIENCE PROGRAM TO
REALLY HELP. IN THE CAREER
MOBILITY ASPECTS OF OUR
PROGRAMS. UM IT ALSO ALLOWS A
STUDENT CENTERED COMPONENT THAT
THEN HELP STUDENTS GET TO THAT
FINAL FINISH LINE OF EMPLOYMENT
AND CERTIFICATION BY ALLOWING
COLLEGES TO INVEST IN THE
CERTIFICATION PROGRAM. EXAMPLES
OF WHAT THAT MAY INCLUDE ARE
SOME OF THE ICTY CERTIFICATES
THAT ALLOW THEM TO THEN BE
EMPLOYABLE. THE END CLUCKS FOR
NURSING SOME OF THE EARLY
CHILDHOOD AND CERTIFICATIONS
THAT ARE REQUIRED ALL OF THESE
CAREER EDUCATION PROGRAMS OFTEN
HAVE A CERTIFICATE OR SOME
CERTIFICATION OF BOARD THAT IS
LICENSING THAT IS NEEDED. AND SO
THAT FINAL EMERGENCY GRANT TYPE
SUPPORT REALLY COULD HELP
STUDENTS THEN UM, MEET THAT
FINAL FINISH LINE SO THAT THEY
CAN BE EMPLOYED AND MOVE ON, UH
, TO, UH, THE SOCIOECONOMIC, UM
, OPPORTUNITIES THAT HAVE BEEN
PROMISED BY OUR COLLEGES AND
THAT THEY LOOKED FORWARD TO SO
WE'RE IN IN STRONG SUPPORT OF
THAT PROPOSAL. I WANT TO END MY
COMMENTS BY HIGHLIGHTING THAT WE
ARE IN STRONG SUPPORT OF THE,
UH, GOVERNORS STUDENT HOUSING
PROPOSAL AND WE WANT TO THANK
THE LEGISLATURE ALSO FOR THEIR
COMMITMENT TO AFFORDABILITY
WITHIN THESE PROJECTS FOR THE
COMMUNITY COLLEGES, UM, WOULD
PROVIDE, UM, IN THE PROJECTS
THAT HAVE BEEN PROPOSED AND
SCORED HIGHEST FOR THIS YEAR. AH
OVER 3700 BEDS, MOST OF THEM
YOU'LL SEE ARE OFFERING RENTS
THAT ARE EVEN 15% LOWER THAN IS
REQUIRED BECAUSE AFFORDABILITY
IS SUCH A CORE COMPONENT TO OUR
EFFORTS IN AFFORDABLE STUDENT
HOUSING. IT IS PART OF OUR
MOVEMENT. IT IS PART OF WHAT WE
SEE IS NECESSARY FOR STUDENT
SUCCESS. WE ALSO SEE THAT IN OUR
PROJECTS AND NEARLY FIVE ABOUT
$500 MILLION OF LOCAL DOLLARS
HAVE BEEN INVESTED AS PART OF
THEIR OWN LOCAL CONTRIBUTIONS
AND EFFORTS TO MAKE THESE
FEASIBLE AND ALSO AFFORDABLE
LASTLY, ALL OF THE PROJECTS HAVE
A VERY SUBSTANTIAL COMMITMENT TO
WRAP AROUND STUDENT SERVICES AND
SUPPORTS THAT AGAIN WILL CONNECT
THESE FACILITIES TO THE SUCCESS
OF OUR STUDENTS AND LEAD TO
SOCIO ECONOMIC OPPORTUNITIES
INTO THE FUTURE. THANK YOU AGAIN
FOR YOUR TIME AND ATTENTION AND
HAPPY TO ANSWER ANY QUESTIONS.
OKAY? I HAVE TWO ISSUES. I WANT
TO FOCUS ON. UM ONE IS THERE'S A
FINITE AMOUNT THAT WE HAVE
AVAILABLE ON THE TABLE FOR.
COMMUNITY COLLEGES THROUGH PROP
98. AND WHETHER WE DO IT WITH
THE 8% COLA. AND TAKE SOME BACK
FROM THE CURRENT YEAR. OR DO THE
5% LIKE YOU'RE SUGGESTING IT'S
ALL THE SAME AMOUNT OF MONEY. IT
WAS LIKE I WAS GIVEN THE CHECK
TO THE DISTRICTS EFFECT, BUT YOU
WERE JUST LABELING IT DEFINITELY
SO WALK ME THROUGH WITH THE
DIFFERENCES. IT'S UPON THE
CHOICES THAT YOU LAY OUT. THAT'S
FOR L. A. SURE FOR THE, UH THE
8.22% COST OF LIVING ADJUSTMENT
THAT WOULD BE GIVEN TO THE
DISTRICTS IN THE BUDGET YEAR,
BUT IT WOULD BE PAID FOR BY
CUTTING FUNDING FOR WHAT THEY'VE
ALREADY RECEIVED. SO THE CONCERN
IS THAT IN THE FOLLOWING YEAR
THERE WON'T BE ENOUGH MONEY
WITHIN PROPOSITION 98 TO SUSTAIN
THAT COST OF LIVING ADJUSTMENT.
SO THAT THE COLLEGES WOULD NOT
BE ABLE TO SUSTAIN THOSE
OPERATIONS AT THAT LEVEL THEY
HAD WITH THE PAY LEVELS THAT
THEY HAVE SO THAT'S THAT'S THE
CONCERN. THAT WE HAVE.
SUSTAINING EVEN IF IT'S A 0%
CALL THE NEXT YEAR BECAUSE IT
CALLS US FOR THAT ONE YEAR
YOU'RE SAYING BASED UPON THE
BUDGETING WITH THE 8% OF NEW
BECAUSE THAT SETS THEY IT'S AN
8% INCREASE TO THEIR BUDGETS. A
LOT OF CASES, THE THAT THAT
AMOUNT HAS BEEN BUDGETED AND
WOULD BE SPENT AND BARGAINED
AWAY. AND THEN THE FOLLOWING
YEAR, THERE COULD BE A REAL RISK
THAT DISTRICTS ARE THAT THE
STATE CAN AFFORD THAT. TO
SUSTAIN THAT COLA, AND THEN
YOU'RE GOING TO HAVE TO HAVE
SWAPPING THEM. YOU HAVE LESS OF
A COAL AMOUNT AND MORE OF KIND
OF FLEXIBLE, ONE TIME ISH
RESOURCES. THAT'S RIGHT. YEAH,
OKAY. THAT'S AN OPTION. UM I
ALSO WANTED TO NOTE THAT, UM
WE'VE ALWAYS NOTED THIS
DISCREPANCY. THAT SOME OF YOUR
PROGRAMS HAVE A COLON. SOME
DON'T AND I GUESS THE COLA IS
BECAUSE THINGS COST MORE WAGES.
FOOD ENERGY. WHAT HAVE YOU SO
YOU KNOW YOUR FACULTY AS THE
SAME COSTS AS THE PROGRAM THAT'S
LITERALLY IN THE SAME BUILDING
SOMETIMES. PAID BY THE SAME
PEOPLE SO I JUST DON'T THINK
THAT MAKES SENSE. SO I KNOW
THERE'S ROUGHLY $678 MILLION. TO
PAY FOR THIS 8.22. PERCENT COLA.
WHAT WOULD YOU ALL THINK? IF WE
SHAVED OFF 35 MILLION AND GAVE A
COLOR TO THOSE OTHER. HALF A
DOZEN OR SO STUDENTS BASED
PROGRAMS IN YOUR COLON WAS
ROUGHLY 8% BUT THAT CAUSED ALARM
. ARE YOU EXPECTING AN ANSWER
FROM THE MINISTRATIONS OR
COMMUNITY COLLEGES? ONE CONCERN
IS, UM, THAT WE LIKE TO HAVE A
COLA. THAT'S EQUAL WITH THE
STATUTORY COMMITMENT. SO I ARE
GOAL WOULD BE THAT YOU IDENTIFY
EVERY SOURCES. UM OTHER
RESOURCES TO PROVIDE THE COST OF
LIVING ADJUSTMENT TO ADDITIONAL
PROGRAMS THAT ARE PRIVATE WASN'T
AN OPTION HERE, AND THAT'S NOT
AN OPTION. IT'S THE IT'S THE
TAKE IT OR LEAVE IT. BECAUSE
RIGHT NOW, IF YOU'RE A CAMPUS,
YOU'RE LIKE, HEY, DEPARTMENT.
YOU GET 8% AND YOU HAVE TO DO
THE SAME EXACT THING WE'RE
GIVING YOU ZERO JUST DOESN'T
SEEM EQUITABLE. SO ALL THINGS
BEING EQUAL. I THINK YOU COULD
SHAVE OFF LIKE THE 0.22 PRETTY
MUCH. I DON'T HAVE THE
CALCULATOR PERIOD. DO THE MATH.
AT 8% CALL AS PRETTY DARN GOOD,
YOU KNOW, TALK TO THE COMMUNITY
COLLEGE PROGRAMS ACROSS THE
STREET. I'M SORRY. THE CHILDCARE
PROGRAMS ACROSS THE STREET FROM
YOUR CAMPUSES. YOU GET A COLA
ZERO SO, YOU KNOW, I THINK THAT
HAVING A SLIGHTLY LESS COLA
WHILE NOT PASSING THE PURITY
TESTS, WHICH YOU MENTIONED, MR
NAVARETTE THAT WE SHOULD HONOR
THAT STATUTORY COLA. I THINK ALL
THINGS BEING EQUAL TO SOMETHING
THAT WE WANT TO CONSIDER KNOWING
THAT WE HEAR FROM SO MANY OF THE
PROGRAMS, ESPECIALLY THE STUDENT
CENTER PROGRAMS WHO SAY, HEY, WE
WANT TO DO MORE IN BASIC AND
BASIC NEEDS AND THE MOJO AND
PUENTE AND MENTAL HEALTH AND
THIS AND THAT WHICH I DON'T HAVE
A COLON, WHICH THEIR COSTS GO UP
TO. SO UM, I THINK WE SHOULD
HAVE A TRUE COMMUNITY COLLEGE.
UM AH, COST OF LIVING, EVEN IF
WE DON'T PASS THAT 8.22 PURITY
TESTS. LET'S THINK ABOUT THAT.
I'M GOING TO COST YOU ANY MORE
MONEY. SPREADING IT OUT A LITTLE
BIT MORE EQUITABLY. YOU KNOW,
THE GOVERNOR LOVES EQUITY. YES
WE HEAR YOUR CONCERNS. WE
CONTINUE TO SUPPORT WHAT'S IN
THE GOVERNOR'S BUDGET. OKAY, MR
ELIO. I JUST WANT TO REITERATE
THAT THE ISSUE IS UNDER THE MAY
REVISE. REVENUES THAT THERE IS
NOT ENOUGH MONEY WITHIN
PROPOSITION 98 TO FUND AN 8% OR
8.258, 0.22% COLA, AND THE
SITUATION IS EVEN MORE, UH, IS
EVEN LARGER ON THE K 12 SIDE,
WHICH YOU'LL HEAR ABOUT MORE
TOMORROW AND I THINK WHATEVER IT
IS, SO WHAT? WHAT DOES THAT
NUMBER ANY NUMBER BY SCENARIO
WOULD STILL BE THE SAME, LIKE
SQUEEZE A LITTLE BIT OFF TO HELP
THESE OTHER, UM, AREAS IN THE
COMMUNITY CAUSES WHICH DON'T
RECEIVE A COLLAR. OH, OKAY.
THANK YOU. SEEING NO QUESTIONS
FOR THIS ANIMAL, HOLD THESE
ISSUES OPEN AND COME BACK WITH
OUR ACTIONS NEXT WEEK. THANK
YOU. NEXT, THE STUDENT
COMMISSION.
HI. FINANCE ELIO GREAT MACHINE.
YES, IT IS. HELLO. UM. GOOD
AFTERNOON TERM ACCORDION
ASSEMBLYMEMBER'S DEVIN MITCHELL
WITH THE DEPARTMENT OF FINANCE.
DISCUSS THE NEW ITEMS FOR THE
STUDENT AID COMMISSION. THE
MAYOR VISION PROPOSES USING A
REVERSION ITEM TO WIND DOWN THE
GOLDEN STATE EDUCATION AND
TRAINING GRANT PROGRAM AT THE
END OF THE 2022 23 FISCAL YEAR
RECORD APPROXIMATELY 480,000,001
TIME GENERAL FUND AND SAVINGS.
ADDITIONALLY THE MAYOR VISION
INCLUDES AN INCREASE OF FOUR
POSITIONS AND 397,000 ONGOING
GENERAL FUND. INADVERTENTLY
INCLUDED IN THE GOVERNOR'S
BUDGET. STATE OPERATIONS TO BE
UTILIZED, PROVIDED MINISTRY OF
SUPPORT FOR THE CONTINUED
IMPLEMENTATION OF RECENTLY
ENACTED FINANCIAL AID PROGRAMS
AND PROGRAM REVISIONS.
ADDITIONALLY AN INCREASE OF
103,000 ONGOING GENERAL FUND
ALSO INADVERTENTLY INCLUDED. MGB
STATE OPERATIONS IS PROPOSED TO
BE UTILIZED TO ASSIST LOCAL
EDUCATION AGENCIES MEETING THE
REQUIREMENT TO SUPPORT HIGH
SCHOOL SENIORS APPLYING FOR
FINANCIAL AID THROUGH THE CASH
FOR COLLEGE PROGRAM. EXCUSE ME.
THE MAYOR. VISION ALSO INCLUDES
AN INCREASE OF 6,000,001 TIME.
FEDERAL FEDERAL FUNDS TO BE USED
FOR THE GOLDEN STATE TEACHER
GRANT PROGRAM TO SUPPORT GRANTS
TO STUDENTS ENROLLED IN SPECIAL
EDUCATION TEACHER PREPARATION
PROGRAMS FOR HIGH NEEDS SCHOOL
SITES. THE CALIFORNIA DEPARTMENT
OF EDUCATION IS PROVIDING SEX
ACT WITH AN ADDITIONAL ROUND OF
INDIVIDUALS WITH DISABILITIES
EDUCATION ACT FUNDING, THE
GOLDEN STATED. SORRY, GOLDEN
STATE TRENT TEACHER GRANT
PROGRAM. UM. SOMEONE FROM THE
COMMISSION CAN ANSWER QUESTIONS
ABOUT ANY OF THE CASELOAD DRIVEN
BUDGET ADJUSTMENTS IN THE MAIL
LETTER, BUT JUST IN THE INTEREST
OF TIME, I'LL FOCUS ON THE
CALGARY AND THE MIDDLE CLASS
SCHOLARSHIP PROGRAM. THE
PROPOSAL REFLECTS UPDATED
PROJECTED EXPENDITURES IN THE
CALDERON PROGRAM, BASED ON THE
LATEST ENROLLMENT ESTIMATES
AMONG STUDENTS ELIGIBLE FOR THE
PROGRAM, INCLUDING THE VOLUME OF
FINANCIAL APPLICATIONS RECEIVED
BY THE MARCH 2ND DEADLINE.
ESTIMATED PROGRAM EXPENDITURES
INCREASED BY 51.4 MILLION THE
BUDGET YEAR AND DECREASED BY 1.2
MILLION IN THE CURRENT YEAR
RELATIVE TO GOVERNOR'S BUDGET.
THE MAYOR. VISION ALSO ASSUMES
INCREMENTAL SAVINGS OF 37.2
MILLION GENERAL FUND IN 2022 23.
TO REFLECT REVISE MENTAL CLASS
SCHOLARSHIP PROGRAM EXPENDITURE
ESTIMATES. UPDATED PROJECTIONS
SHIFTED ESTIMATED PROGRAM
EXPENDITURES FROM 630.4 MILLION
GOVERNOR'S BUDGET. 593.2
REVISION. ADDITIONALLY THE
ADMINISTRATION HAS DETERMINED
THAT A GOOD FAITH EFFORT WAS
MADE BY INDEPENDENT INSTITUTIONS
FOR HIGHER EDUCATION TOWARDS
MEETING THE STATUTORY ASSOCIATE
DEGREE FOR TRANSFER COMMITMENT
REQUIRED TO MAINTAIN THE MAXIMUM
CAL GRANT AWARD AMOUNT FOR
STUDENTS ATTENDING INDEPENDENT
INSTITUTIONS OF HIGHER ED AT
9358 FOR THE 2023 24 AWARDS
YEAR. ADDITIONALLY IT IS
REQUESTED THAT STATUTORY CHANGES
TRANSMITTED WITH THE GOVERNOR'S
BUDGET, THE ALTERED TO MAINTAIN
THE REQUIREMENT THAT THE GOLDEN
STATE TEACHER GRANT PROGRAM
AWARD HE IS RESERVING PRIORITY
SCHOOL. ADDITIONALLY IT IS
REQUESTED THAT STATUTORY CHANGES
BE ADDED TO THE GOLDEN STATE
TEACHER GRANT PROGRAM TO ENABLE
STUDENTS ATTENDING CERTAIN
ONLINE PROVIDERS OF HIGHER ED.
OTHER PROGRAM REQUIREMENTS
BECOME ELIGIBLE TO RECEIVE
AWARDS. UM FINALLY CONSISTENT
WITH WHAT THE ADMINISTRATION HAS
DONE IN PREVIOUS YEARS IS
REQUESTED. THE STATUTORY CHANGES
BE ADDED TO REQUIRE CAL GRANT
PARTICIPATING INSTITUTIONS TO
USE THE THREE YEAR COHORT.
DEFAULT RATES ON STUDENT LOAN
REPAYMENT. CERTIFIED IN 2020
DETERMINES AN INSTITUTION'S
ELIGIBILITY TO PARTICIPATE IN
THE CALDERON PROGRAM FOR THE
2024 25 ACADEMIC YEAR. THE
FEDERAL GOVERNMENT EXTENDED
STUDENT LOAN PAUSE HAS CAUSED
THE UNDERLYING DATA NEEDED TO
COMPUTE THAT THREE YEAR COHORT
DEFAULT RATE TO BE UNAVAILABLE.
I'M GOING TO TURN OVER TO MY
COLLEAGUE JACK'S WALL TO DISCUSS
ONE FINAL ITEM. THE PUBLIC
INTEREST ATTORNEY LOAN PROGRAM
ITEM. THANK YOU. GOOD AFTERNOON
CHECKS. WELL, DEPARTMENT OF
FINANCE, UM, EXCITED TO TALK
ABOUT THIS PROGRAM OF THE PUBLIC
INTEREST ATTORNEY LOAN REPAYMENT
PROGRAM WAS CREATED STATUTE
ABOUT 20 YEARS AGO. AT THE TIME,
GIVEN THE STATE'S TIGHT FISCAL
SITUATION, NO FUNDING WAS
AUTHORIZED FOR THAT PROGRAM.
REMAINED UNFUNDED UNTIL ABOUT
2015 WHEN A BILL WAS PASSED.
THAT WOULD ALLOW, UH, INTEREST
ON LAWYERS TRUST ACCOUNTS THAT A
SHEET TO THE STATE WHICH HAS
HAPPENS IN CASES WHERE, UM THE
CLIENT IS DECEASED. AND THERE IS
NO PLACE TO PASS ON THOSE THAT
MONEY TOO. AH UPON WORKING WITH
THE STATE COMPTROLLER'S OFFICE
FOLLOWING THE PASSAGE OF THAT
BILL, WE DETERMINED THERE
WEREN'T SUFFICIENT RESOURCES TO
START A PROGRAM OF ANY SIZE. IN
SUBSEQUENT YEARS. WE HAVE, UH,
WE RECEIVED WORD I THINK THIS
YEAR FROM THE STATE CONTROLLER'S
OFFICE THAT, UH, SOMEWHAT
SIZABLE AMOUNT OF MONEY HAD BEEN
DEPOSITED INTO THIS ACCOUNT. UM
SO WHAT WE ARE DOING IS WE'RE
EXPENDING ABOUT $667,000 ENOUGH
GRANT MONEY 455 $51,000 TO
SUPPORT. FOUR EXCUSE ME, UH, 41.
AH! PUBLIC INTEREST ATTORNEYS TO
THE ENTIRE FOUR YEAR ALONE
REPAYMENT PERIOD AS PER THE
PROGRAM. UH HUH. AND THEN ENOUGH
MONEY TO PROVIDE AN A G P A. AND
SOME, UH MARKETING
ADMINISTRATION STANDARD
COMPLEMENT TYPE FUNDING FOR THE
COMMISSION TO ADMINISTER THE
PROGRAM. SO IT'S BEEN A LONG
TIME COMING AND THE LAW HAS
WORKED. WE NOW HAVE THIS FUNDING
AND THE WAY IT'S BEING
STRUCTURED IS IN THE FUTURE. IF
WE CONTINUE TO SEE THE SORT OF
ZERO TREND AND REVENUE THE
AMOUNT OF MONEY THAT HAS BEEN
DETERMINED THAT IS, YOU KNOW, WE
HAVE ON HAND. THE WAY WE
STRUCTURE THIS PROGRAM IS THAT
IT WOULD CONTINUE TO BE ABLE TO
OPERATE FOR ABOUT FOUR OR FIVE
YEARS WITHOUT ANY NEW INFLOWS
FROM MY ALTAR ACCOUNTS. SO WE
THINK THAT THIS IS A CAUTIOUS
BUT EFFECTIVE WAY TO DO THIS
PROGRAM AND WE'RE EXCITED TO, UH
FINALLY GET IT DONE. SO THAT'S
THE END OF THE ADMINISTRATION'S
PRESENTATION AND ALL THE OTHERS
ON THE PANEL. IT'S THE KING ELIO
THEIR NUMBER OF PROPOSALS FOR
THE COMMISSION AT THE MAYOR
VISION, BUT WE'LL JUST COMMENT
ON A FEW OF THEM HAPPY TO TAKE
QUESTIONS IN ANY OF THE OTHERS.
FIRST REGARDING THE CASELOAD.
ADJUSTMENTS FOR CAL GRANTS,
MIDDLE CLASS SCHOLARSHIP AND THE
VARIOUS OTHER SMALLER FINANCIAL
AID PROGRAMS. WE THINK THESE ARE
REASONABLE BASED ON THE MOST
RECENT DATA, AND WE RECOMMEND
APPROVING THEM. WE ALSO
RECOMMEND APPROVING THE PROPOSAL
TO DISCONTINUE THE GOLDEN STATE
EDUCATION AND TRAINING GRANT
PROGRAM AT THE END OF THE YEAR.
THIS PROGRAM SERVICE WORKERS
DISPLACED BY THE COVID 19
PANDEMIC. AND AS WE DISCUSSED IN
EARLIER SUBCOMMITTEE HEARING
THIS SPRING, WE THINK THE
UNDERLYING NEED FOR THIS PROGRAM
HAS DIMINISHED. THERE IS ONE
PROPOSAL THAT WE WANTED TO RAISE
SOME CONCERNS WITH AND IT'S ONE
OF THE TRAILER BILL PROPOSALS
RELATED TO THE OTHER GOLDEN
STATE PROGRAM. GOLDEN STATE
TEACHER GRANTS IN PARTICULAR
THIS LANGUAGE WOULD EXPAND
ELIGIBILITY AND THE TEACHER
GRANTS PROGRAM TO STUDENTS WHO
ARE ENROLLED AT CERTAIN ONLINE
PROVIDERS SUBJECT TO THE
DETERMINATION OF THE LABOR
SECRETARY. HERE WE WOULD NOTE
THAT DEMAND FOR THE TEACHER
GRANTS PROGRAM UNDER THE CURRENT
ELIGIBILITY RULES IS ALREADY
HIGH, AND THE COMMISSION IS
PROJECTED TO SPEND THOSE FUNDS
AHEAD OF SCHEDULE. THE PROPOSED
ELIGIBILITY EXPANSION COULD ADD
SOME COMPLEXITY TO PROGRAM
ADMINISTRATION, IN PART BECAUSE
IT WOULD INVOLVE AN AGENCY
THAT'S NOT CURRENTLY INVOLVED IN
ADMINISTERING THIS PROGRAM. AND
THEY'RE THE PROPOSAL APPEARS TO
EXPAND ELIGIBILITY TO PROVIDERS
WHO ARE BASED OUTSIDE CALIFORNIA
, WHICH RAISES SOME POLICY
CONSIDERATIONS THAT MIGHT
WARRANT SOME MORE THOROUGH
DISCUSSION. THANK YOU. I'M HAPPY
TO TAKE QUESTIONS ON THESE OR
ANY OTHER ITEMS IN THE
COMMISSION'S BUDGET AT THE
MIRROR VISION. OKAY. THANK YOU.
STEPHEN COMMISSION. WELL GOOD
EVENING CHAIR MCCARTY AND
SUDDENLY MEMBER MURATSUCHI. I
THINK WE'RE AT THAT TIME OF YEAR
THAT TIME OF DAY WHERE IT'S NOW.
GOOD EVENING, SO I WILL TRY TO
KEEP MY COMMENTS BRIEF AND
RECOGNITION THAT IT'S ALREADY
BEEN A LONG DAY AND YOU'VE GOT
ANOTHER VERY MEATY DISCUSSION
TOMORROW FOR THE K 12 PORTION OF
YOUR AGENDA. JAKE BREMNER,
DEPUTY DIRECTOR FOR POLICY AND
PUBLIC AFFAIRS AT THE STUDENT
AID COMMISSION, AND WOULD LIKE
TO BEGIN MY COMMENTS BY
EXPRESSING OUR GRATITUDE TO THE
GOVERNOR AND HIS ADMINISTRATION.
FOR INCLUDING KEY INVESTMENTS
THAT WILL HELP CALIFORNIA IN
BUILDING ON OUR AND MAINTAINING
OUR MOMENTUM AND PROMOTING
COLLEGE AFFORDABILITY THROUGH
NEW PROGRAMS AND INCREASED
SUPPORT AND APPLYING FOR
FINANCIAL AID FOR OUR STUDENTS,
AND TO THE COMMENTS THAT YOU
STARTED HEARING WITH CHAIR
MCCARTY ALSO WANT TO
PARTICULARLY EXPRESS OUR
APPRECIATION FOR THOSE NEW STAFF
POSITIONS THAT WERE INCLUDED IN
THE GOVERNOR'S MAY REVISION. AND
RECOGNITION THAT THAT'S NOT FELT
ACROSS ALL BUDGET AREAS. UH AND
WHILE IT HADN'T BEEN EVERYTHING
THAT WE REQUESTED, THESE
POSITIONS DO REFLECT WHERE WE AT
THE STUDENT AID COMMISSION HAVE
IDENTIFIED SOME OF OUR MOST
URGENT CAPACITY CONSTRAINTS. AS
I SHARED AT AN EARLIER HEARING,
THE STUDENT AID COMMISSION HAS
SEEN ITS RESPONSIBILITIES GROW
SIGNIFICANTLY OVER THE PAST
SEVERAL YEARS THE LEGISLATURE
AND GOVERNOR HAVE ENACTED OR
EXPANDED PROGRAMS OR ESTABLISH
NEW POLICIES LIKE UNIVERSAL
FINANCIAL AID APPLICATIONS FOR
HIGH SCHOOL SENIORS, AND I'LL
COME BACK TO THAT IN JUST A
MOMENT. AND AS REFLECTED IN ONE
OF THE POSITIONS THAT'S BEEN
INCLUDED HERE. THERE ARE SEVERAL
ONE TIME PROGRAMS THAT HAVE
SIGNIFICANTLY LENGTHY RUNWAYS IN
THE CASE OF THE LEARNING ALIGNED
EMPLOYMENT PROGRAM RUNNING UNTIL
2031 HIRING LIMITED TERM STAFF
TO SUPPORT THAT KIND OF LENGTHY
PROGRAM IS INEFFICIENT. IT
CREATES RISK AND OUR
ADMINISTRATIVE PROCESSES AS YOU
CHURNED THROUGH THOSE LIMITED
TERM STAFF. THESE POSITIONS ARE
REALLY CRITICAL TO ENSURING THE
STUDENT AID COMMISSION IS ABLE
TO SUCCESSFULLY ADMINISTER AND
TO PROMOTE THESE PROGRAMS.
ADDITIONALLY THIS IS A BIG YEAR
AND FINANCIALLY THAT WE'RE
COMING UP ON AS YOU'VE PROBABLY
HEARD, AND I THINK I SPOKE TO AT
THE PRIOR HEARING. THERE IS A
NEW FREE APPLICATION FOR FEDERAL
STUDENT AID FAFSA THAT WILL BE
RELEASED LATER THIS YEAR.
FEDERAL STUDENT AID THE PORTION
OF U. S DEPARTMENT OF EDUCATION
THAT OVERSEAS THAT HAS BEEN
RESPONSIBLE FOR REDESIGNING THAT
NEW APPLICATION. IN TIME FOR
DISTRIBUTION BY NO LATER THAN
JANUARY. 1 2024 COUPLE OF MONTHS
AGO, THEY DID ANNOUNCE THAT
THERE'S GOING TO BE A DELAY TO
LAUNCH OF THAT NEW APPLICATION,
WHICH WILL BE AVAILABLE LIKELY
SOMETIME IN DECEMBER. WHEN IN
CUSTOMARY UH, IT'S USUALLY
AVAILABLE ON OCTOBER 1. OF UH,
THE YEAR PRIOR TO THE STUDENT
ENROLLING. SO THERE'S A LOT FOR
THE STUDENT AID COMMISSION AND
OUR PARTNERS TO IMPLEMENT TO
PREPARE FOR AS IT RELATES TO
THIS NEW APPLICATION AND MAKING
SURE THAT OUR COUNSELORS,
EDUCATORS AND OTHER PARTNERS ARE
APPRISED OF THOSE CHANGES. SO IN
THAT REGARD WERE ALSO VERY
GRATEFUL THAT THE MAYOR REVISION
DOES INCLUDE ABOUT $100,000
TOWARDS THE CASH FOR COLLEGE
PROGRAM THROUGH WHICH WE PROVIDE
FREE ASSISTANCE TO STUDENTS AND
THEIR FAMILIES AND APPLYING FOR
FINANCIAL AID. LAST YEAR, YOU
MIGHT RECALL THAT PROGRAM
RECEIVED 500,000. YOU KNOW, ONE
TIME INCREASE THAT HAS ALLOWED
US TO EXPAND THOSE WORKSHOPS IN
THE REGIONS THAT WERE NOT
PREVIOUSLY SERVED BY A GRANTED
ORGANIZATION. SO WE'RE VERY
GRATEFUL FOR THAT $100,000
INCREASE FOR THE PROGRAM ON AN
ONGOING BASIS. IT'S NOT THE FULL
500,000 THAT WE HAD. UH THIS
PRIOR YEAR, SO THAT WILL PUT THE
STUDENT AID COMMISSION IN A
PLACE WHERE WE'LL NEED TO
DETERMINE HOW WE POTENTIALLY
REDUCE THE SUPPORT FOR SOME
GRANTEE ORGANIZATIONS THAT HOST
THOSE FINANCIAL AID WORKSHOPS.
WHICH IN LIGHT OF THAT FINANCIAL
AID, UH, UNIVERSAL APPROACH FOR
OUR HIGH SCHOOL SENIORS. REALLY.
THERE'S BEEN RENEWED FOCUS ON
THESE WORKSHOPS. THIS YEAR, WE
HOSTED A RECORD NUMBER OF
WORKSHOPS AND AGAIN, WE'RE ABLE
TO NOT ONLY DEEPEN SUPPORT FOR
EXISTING PARTNERS, BUT GO INTO
THOSE REGIONS. WE HAD NOT
PREVIOUSLY SERVED THROUGH THAT
PROGRAM. NOW ONE OTHER RELATED
ISSUE TO THIS DELAY OF THE FAFSA
THAT I DO WANT TO FLAG FOR
CONSIDERATION BY THE GOVERNOR
AND LEGISLATURE IS AROUND THE
PRIORITY APPLICATION DEADLINE
FOR CAL GRANT COMMUNITY. COLLEGE
STUDENTS CAN APPLY UNTIL
SEPTEMBER 2ND. SO THERE'S
ACTUALLY STILL TIME FOR OUR
STUDENTS TO APPLY. NOW THEY'RE
PLANNING TO GO TO A COMMUNITY
COLLEGE. HOWEVER, IF YOU'RE
GOING TO AFFORD YOUR INSTITUTION
THE DEADLINE IS TYPICALLY MARCH
2ND WITH THE DELAY OF THE FAFSA
NOW PUSHING THAT BACK BY TWO,
POTENTIALLY ALMOST THREE MONTHS
. WE DO THINK IT'S PRUDENT TO
CONSIDER UTILIZING TRAILER BILL
LANGUAGE SUCH THAT WE ESTABLISH
AN APRIL 2ND DEADLINE FOR NEXT
YEAR SO THAT WE CAN OFFSET THAT
, TO SOME DEGREE, PROVIDE MORE
TIME TO OUR STUDENTS TO APPLY
FOR AID. AND OF COURSE, JUST IN
CLOSING. I'D BE REMISS IF I DID
NOT COMMENT ON OUR COLLECTIVE
WORK AHEAD ON CALVARY REFORM.
CAL GRANT CONTINUES TO LEAVE OUT
OUR OUR MOST RECENT ESTIMATE WAS
OVER 150,000 STUDENTS DUE TO
ELIGIBILITY BARRIERS THAT WE
WOULD BE ELIMINATING UNDER
CALDERON REFORM, WHICH WILL ALSO
HELP US SIMPLIFY THE WAY THAT WE
EXPLAIN THE AVAILABILITY OF
STATE AID TO OUR STUDENTS AND
FAMILIES. SO AS I SHARED AT OUR
PRIOR HEARING, WE ARE WORKING
WITH OUR CAMPUS AND SEGMENT
PARTNERS TO PREPARE FOR THAT
IMPLEMENTATION PENDING THE
REVENUE DETERMINATION THAT WAS
INCLUDED IN LAST YEAR'S BUDGET
AGREEMENT. SO WE LOOK FORWARD TO
THAT DISCUSSION AHEAD AND WOULD
JUST URGE OUR POLICYMAKERS TO
HOLD THIS IN MIND THIS URGENT
PRIORITY FOR OUR STUDENTS NEXT
YEAR AS YOU MAKE ANY DECISIONS
ABOUT INVESTMENTS IN COLLEGE
AFFORDABILITY AND FINANCIAL AID
THIS YEAR. SO IN CLOSING, JUST
EXPRESS OUR GRATITUDE AGAIN FOR
THE ADDITIONAL SUPPORT REFLECTED
AND MAY REVISION AND LOOK
FORWARD TO ANY OTHER QUESTIONS
YOU MIGHT HAVE.
IS THE. MONEY IS TWO FOR US, AND
A COMMISSION IS THE MONEY FOR
THE FOUR POSITIONS. FOCUSED ON
IMPLEMENTING THAT THAT CALDERON
REFORM THAT IN MIDDLE CLASS
SCHOLARSHIP THAT'S BEEN DONE TO
DATE OR THE FURTHER EXPANSION.
THOSE ARE POSITIONS THAT HELP US
CATCH UP WITH WHERE WE'VE SEEN
SOME OF OUR CAPACITY CONSTRAINTS
. REALLY, SINCE I WOULD SAY
PROBABLY PRIOR TO 2021, BUT
CERTAINLY IN THAT 2021 BUDGET
AGREEMENT THAT CREATED THE NEW
COMMUNITY COLLEGE ENTITLEMENT
PROGRAM, THE MUCH MORE EXPANSIVE
AND MORE COMPLICATED MIDDLE
CLASS SCHOLARSHIP PROGRAM AS
WELL AS THE NUMBER OF OTHER ONE
TIME PROGRAMS LIKE LEARNING
ALIGNED EMPLOYMENT PROGRAM,
GOLDEN STATE TEACHER GRANT
PROGRAM. AND SEVERAL OF THESE
POSITIONS. DO YOU WORK ACROSS
PROGRAM AREAS TO HELP PROMOTE
THOSE PROGRAMS HELP BRING
INFORMATION TO STUDENTS AND
FAMILIES AND OTHER PARTNERS SO
THAT WE CAN GET THE MESSAGE OUT
ABOUT THESE MAJOR OPPORTUNITIES
FOR STUDENTS AND FAMILIES. SO
IT'S REALLY WORK THAT'S ALREADY
BEEN UNDERWAY. THIS HELPS US
MAKE SURE WE HAVE THOSE
RESOURCES ON AN ONGOING
SUSTAINABLE BASIS FOR THE
DEPARTMENT OF FINANCE. YOU KNOW
, WE AGREED UPON THIS CALDERON
MIDDLE CLASS CHANGED LAST YEAR
AND SUPPOSED TO BE FUNDED IN A
OUTGOING YEAR. WHEN THE WHEN THE
BUDGET HAS A SCENARIO THAT THAT
WARRANTS THAT WHAT DOES THAT
LOOK LIKE? NEEDS TO HAPPEN FOR
THAT IMPLEMENTATION TO START
IMPLEMENTATION OF, OF WHICH
WHICH PROGRAM. THE CALGARY THE
CALGARY AND REFORM SO THE MAY
REVISION MAINTAINS THE POSITION
FROM JANUARY IN WHICH A DECISION
IS GOING TO BE MADE ABOUT
WHETHER THOSE CHANGES ARE GONNA
BE IMPLEMENTED MAY OF NEXT YEAR.
YEAH. YEAH. SO WHAT NEEDS TO
HAPPEN IS WE'RE LIKE A TRIGGER
IS THERE YOU KNOW, OBVIOUSLY
WASN'T THE BEST NEWS LAST WEEK
FROM THE GOVERNOR'S MARY VISE.
SO WHAT IS THERE? IS THERE A IS
THERE A YOU KNOW A NUMBER OF
THRESHOLD THAT NEEDS TO HAPPEN
BEFORE WE SEE THIS, UM, THE END
SO IT'S BASED ON THE
AVAILABILITY OF STATE REVENUES
OVER A MULTIYEAR PERIOD. I DON'T
BELIEVE THERE IS A SPECIFIC
NUMBER. FROM MY COLLEAGUE,
DEPARTMENT OF FINANCE IN STATE
LAW. I BELIEVE IT SPECIFIES THAT
, UH, IN THE PICTURE THAT WE'RE
TALKING ABOUT THERE WOULD BE
NEED NEEDED NO ADDITIONAL ACTION
TO ACHIEVE A BALANCED BUDGET. SO
ESSENTIALLY, WHAT WE'D BE
LOOKING AT. IS OUR REVENUES
SUFFICIENT TO MAINTAIN A BASE
BUDGET. AND IF SO, THEN THE
DIRECTOR WILL BE MAKING A
DETERMINATION ONE WAY OR THE
OTHER. IF THAT'S THE CASE, SO,
UM WE'LL HAVE A FULLER
DISCUSSION OF THIS AND PROBABLY
NEXT FALL AND NEXT MAY, BUT FOR
NOW, WE'RE COMMITTED TO THIS
TRAILER BILL NEGOTIATED BETWEEN
THE LEGISLATURE AND THE
ADMINISTRATION IN LAST YEAR'S
BUDGET ACT. SO WE MAINTAIN OUR
STRATEGIC PATIENTS ON THAT
COURSE. YEAH. UH GREAT. SO, AS
YOU KNOW, UM, WE WERE EXCITED TO
EMBRACE THIS PAST YEAR AND
THANKS TO GOVERNOR FOR DOING
THAT WE HAD A MORE COMPREHENSIVE
AND A BROADER FINANCIAL AID FORM
. QUESTS UM, YET FREE COLLEGE
BASICALLY. UM EXPANDING MIDDLE
CLASS AND CAL GRANT? UM.
PROGRAMS TO FUND MORE THAN NON
TUITION COSTS. I GUESS MY
QUESTION IS FOR DEPARTMENT OF
FINANCE. I KNOW THAT, UM, THAT
THE UNIVERSITY OF CALIFORNIA.
HAS TALKED ABOUT. THEY'D LIKE TO
HAVE A DEBT FREE COLLEGE FOR
THEIR STUDENTS BY FORGET WHAT
YEAR I THINK MR DRAKE POINTS
OUT, AND THEN THE GOVERNOR, UM
YOU KNOW, SEVERAL TIMES TO HAS
TALKED ABOUT THAT. SO I MY
QUESTION IS THAT WE OBVIOUSLY
HAVE THE BUDGET FOR IT THIS
YEAR. BUT IS THAT SOMETHING THAT
DEPARTMENT OF FINANCE THINGS?
NEEDS TO HAPPEN IN ORDER FOR THE
U. C TO MEET THEIR UNDERSTANDING
OF WHAT DEBT FREE COLLEGE IS OR
YOU KNOW, WITH THE GOVERNOR'S
UNDERSTANDING OF DEBT FREE
COLLEGE IS IT'S UNCLEAR. I MEAN,
THERE'S THERE ARE I'M SURE MANY
PATHS TO GETTING TO THAT POINT
AT THIS JUNCTURE, THE
ADMINISTRATION IS MAINTAINING
ITS UNPRECEDENTED SUPPORT FOR
HIGHER EDUCATION AND STUDENT AID
, FOCUSING ON EQUITY ACCESS AND
STUDENT SUCCESS. WE'RE GOING TO
CONTINUE DOWN THAT COURSE AS
REVENUES, THE ECONOMIC SITUATION
CONTINUES TO BECOME MORE
APPARENT. FURTHER DISCUSSIONS
ALONG THAT VEIN COULD BE COULD
BE POSITIVE. BUT AT THIS POINT
WE'VE GOT TO MAINTAIN THE COURSE
IN THIS ADMINISTRATION IS VERY
UNUSUALLY AND HIGHLY COMMITTED
TO INVESTING IN HIGHER EDUCATION
. 100% I'M JUST TRYING TO
UNDERSTAND IF YOU ALL THINK THAT
EVENTUALLY ONE DAY IF WE WANT
TO, AND I ASKED THIS TO MR
DRAKE, IT IS OVERVIEW HEARING
THREE MONTHS AGO. NOT SURE IF
YOU IF YOU WERE HERE. UM, MR
SEEWALD. IS, UM HIS WHAT DO YOU
WHAT DO YOU COUNTING ON FOR YOUR
DEBT FREE COLLEGE IS THIS èC
MONEY IS THIS YOU KNOW THE BLUE
AND GOLD. YOU KNOW, HE'S LIKE.
NO, NO, NO. WE'RE COUNTING ON,
UM INCREASED FINANCIAL AID FROM
CALIFORNIA SAID OKAY, SO YOU'RE
COUNTING ON YOU KNOW THE MEDINA
MCCARTY LABOR AND THEN OVER CAME
UP WITH THIS YEAR PROPOSAL. AND
SO I GUESS WHAT I'M TRYING TO
UNDERSTAND IS DOES THE
DEPARTMENT OF FINANCE AND THE
GOVERNOR CONCUR WITH THAT
STATEMENT THAT IF YOU ARE GOING
TO HAVE DEBT FREE COLLEGE ONE
DAY IN CALIFORNIA ONE YOU NEED
TO HAVE, YOU KNOW A BUDGET
SITUATION TO BASICALLY, YOU
KNOW, MAKE THAT CONVERSATION
REALISTIC, BUT TO WE WOULD NEED
TO EXPAND CALDERON AND MIDDLE
CLASS SCHOLARSHIP TO PAY FOR NON
TUITION COSTS. AS IT STANDS, I
MEAN, THERE WAS A VERY INTER
INTERCONNECTED INTERPLAY BETWEEN
INSTITUTIONAL AID STATE AID
PROGRAMS CONTINUED SORT OF GAPS
IN FUNDING TO ESSENTIALLY
CREATED. ESSENTIALLY A FREE
COLLEGE SITUATION. SO WHETHER
THAT MEANS THAT YOU SEE
DEDICATES ADDITIONAL RESOURCES
OR CSUN. CSU'S CASE DEDICATES
ADDITIONAL RESOURCES ON THEIR
SIDE. OR THE WHETHER THE STATE
INCREASES ITS COMMITMENT ON OUR
SIDE. THERE ARE ANY SORT OF
COMBINATIONS OF THOSE TWO
ACTIONS THAT YOU CAN GET YOU
THERE. SO WHILE THAT MAYBE THE
PRESIDENT DRAKE'S PREFERRED
COURSE. THAT'S CERTAINLY
SOMETHING THAT WE'VE BEEN
TALKING ABOUT IN COMMITTEE AND
WE HAVE A PROPOSAL THAT WE
AGREED TO LAST YEAR. I THINK WE
HAVE A FULLER DISCUSSION ABOUT
THAT, AS WE GET A BETTER PICTURE
OF REVENUES. BUT IN TERMS OF
JUST THE SHEER QUESTION OF IS,
WOULD IT REQUIRE MORE RESOURCES
TO ACHIEVE A SITUATION IN WHICH
THE VAST MAJORITY OF NOT ALL
STUDENTS HAD A DEBT FREE PATH TO
COLLEGE? IT'S LIKELY THAT
ADDITIONAL RESOURCES WOULD BE
REQUIRED TO DO SO. YEAH. FAIR
QUESTION. GOOD ENOUGH. AND YOU
DID THE ENDS CLARIFY DEBT FREE,
BUT A MINUTE AGO, YOU SAID FREE
AND JUST WANT TO MAKE SURE THERE
WHERE THE MILLIONS WATCHING US
TODAY WE'RE NOT PROPOSING FREE
COLLEGE DEBT FREE, SO PARENTS
STILL WOULD PAY BASED UPON
THEIR, UM UM, ESTIMATED FAMILY
CONTRIBUTION. PFC THAT RIGHT, UM
AND THEY'D HAVE TO, YOU KNOW,
WORK PART TIME FILL UP THE GAP
THERE, SO IT'S NOT A TOTAL FREE
LUNCH, NOT FREE COLLEGE. BUT BUT
DEBT FREE, BUT WE APPRECIATE
YOUR RESPONSE AND AGAIN. THIS IS
QUEST GOING FORWARD AND TOP
PRIORITY FOR THE ASSEMBLY. UM MR
MURATSUCHI. THANK YOU. I AM. I
HEARD THAT THERE WAS I DIDN'T
READ ANY LANGUAGE SPECIFIC TO
THIS, BUT THERE WERE SOME
CHANGES TO THE GOLDEN STATE
TEACHER GRANT PROGRAM. UH COULD
YOU ELABORATE ON THAT? AND, UH
AND THE REASONS WHY THE PROPOSED
CHANGE WAS MADE. SO I MEAN,
THERE WERE THERE WERE TWO.
THERE'S TWO TRAILER BILLS THAT
ARE TO THIS EFFECT. ONE WAS JUST
, UM IT WAS IT WAS REQUESTED
THAT SATURATE CHANGES
TRANSMITTED WITH WITH COVERS
BUDGET BE CHANGED. IT'S CHANGING
A TRAILER BILL FROM JANUARY TO
MAINTAIN THE REQUIREMENT THAT
THE GOLDEN STATE TEACHER PROGRAM
AWARDEES SERVANT 30 SCHOOLS,
HIGH NEED SCHOOLS, UM THIS WAS
COVERED IN IN SUBCOMMITTEE, UM
RESPONDING TO FEEDBACK FROM UM.
AND YEAH, AFTER CONVERSATION
WITHIN THE ADMINISTRATION, SORT
OF RESTORING THAT REQUIREMENT
FOR GOLDEN STATE. UM IT THE
TRAILER BILL IS POSES PUBLIC, SO
BUT I CAN. OKAY, SO BASICALLY,
IT'S TOO UM, MAINTAIN THE
REQUIREMENT THAT GOLDEN STATE
TEACHER GRANT RECIPIENTS
CONTINUE TEACHING HIGH NEEDS
SCHOOLS. YES AND IT DOES CLARIFY
, UM SO I SORT OF ADMINISTRATIVE
MATTER THAT SEE SECT HAVE BEEN
DOING WHICH IS IN A CASE WHERE A
TEACHER AND BEGINNING SERVICE AT
A SCHOOL THAT WAS CONSIDERED
HIGH PRIORITY I NEED AND THEN
LATER ITERATIONS OF DATA TURNS
OUT THAT YOU KNOW, KIND OF FALLS
BELOW THAT THRESHOLD THAT IF YOU
WERE AT THAT SCHOOL AND YOU
BEGAN TEACHING THERE, AND IT WAS
ON THE LIST, YOU'RE NOT GOING TO
BE PENALIZED IF YOU CONTINUE TO
TEACH AT THAT SCHOOL SITE. SO I
THINK THAT'S ANOTHER SIGNIFICANT
CHANGE. YOU'LL SEE IN THAT
LANGUAGE. JUST UH THERE'S A
THERE'S ALSO ONE JUST ONE MORE
THING WORTH EXPANDING
ELIGIBILITY TO ALLOW GRANT
RECIPIENTS TO HAVE FILLED THE
SERVICE OBLIGATION AT A
PRESCHOOL PROGRAM. SO THERE'S AN
EARLIER COMPONENT TO OKAY. THANK
YOU. DID FIND ME. THERE ARE SOME
ADDITIONAL TRADE ABILITY CHANGES
PROPOSED TO THIS PROGRAM JUST TO
BUILD ON WHAT THE DEPARTMENT OF
FINANCE IS SHARED. THERE IS A
PROPOSAL THAT WOULD EXPAND
ELIGIBILITY TO STUDENTS WHO ARE
ENROLLED AT CERTAIN ONLINE
PROVIDERS AS DETERMINED BY THE
LABOR SECRETARY. OKAY THANK YOU.
THAT'S IT FOR US UP HERE. WE
WILL HOLD THIS ISSUE, BUT AS
WELL THAT CONCLUDES THE HIGHER
ED. UH PORTION AND WE WILL HEAR
THE PROPER 98 PEACE WITH T K
THROUGH 12 AND CHILDCARE
TOMORROW. WITH THAT WE CAN HEAR
IN OUR PUBLIC COMMENT. ANYBODY
IN THE AUDIENCE? HIGHER ED
PUBLIC COMMENT, SAYING NONE. WE
HAVE TWO PEOPLE ON THE PHONE.
ONE IN PERSON. YES, SORRY THIS
YEAR. YEAH QUICKLY. ENOUGH. YES,
UM. KATHY VAN AUSTIN ON BEHALF
OF JOHN BURTON. ADVOCATES FOR
YOUTH JUST WANTED TO STATE. UM
WE'RE HOPING FOR SOME CONTINUITY
BETWEEN THE ASSEMBLY AND THE
SENATE. ON LANGUAGE TO FULLY
FUND THE COST OF ATTENDANCE FOR
FOSTER YOUTH. UM THE GOVERNOR'S
INCREASE OF MIDDLE CLASS
SCHOLARSHIP THAT HELPS SET CSU
AND YOU SEE UM, WE STILL HAVE
THE COMMUNITY COLLEGES THAT WE
CARE DEEPLY ABOUT. THAT'S WHERE
WE'RE GOING TO HAVE MOST OF OUR
PASTOR YOUTH. AND SO REALLY,
WITH ONLY 10% OF OUR FOSTER
YOUTH ATTAINING OF TWO OR FOUR
YEAR DEGREE, THIS FUNDING WILL
REALLY HELP. UM ADVANCED THEIR
LIVES AND HELP THEM LEAD. UM UM
, UH, REALLY SUCCESSFUL LIVES.
UH, OBVIOUSLY, FOR OUR MOST
VULNERABLE STUDENTS, SO THANK
YOU VERY MUCH. THANK YOU. OKAY
WE HAVE COLORS ON THE PHONE.
PLEASE PROCEED. YOU HAVE ONE
MINUTE, 60. SECONDS OR LESS.
THANK YOU. THANK YOU, MR CHAIR.
WELL, WELL, NOW GO TO LINE 16.
GOOD AFTERNOON, MR CHAIRING
MEMBERS. SYLVIA ELITE SHOCK HERE
ON BEHALF OF THE CALIFORNIA
FACULTY ASSOCIATION. WE ASKED
THE LEGISLATURE ADDRESS THE
ACCELERATING UNDERFUNDING OF THE
CSU BY PROVIDING ADDITIONAL
RESOURCES ABOVE THE LEVEL
SPECIFIED IN THE COMPACT. WE
BELIEVE THAT THE CURRENT FUNDING
LEVELS ARE ADEQUATE FOR
SUSTAINABLE AND EFFECTIVE.
EDUCATIONAL SYSTEM. SECONDLY THE
THAT LEGISLATORS RECONSIDER THE
PRACTICE OF PROVIDING
UNDESIGNATED FUNDING INCREASES
TO THE CSU AND INSTEAD PROVIDE
MORE DIRECTION AS TO BE INTENT
OF THE STATE IN ALLOCATING THOSE
RESOURCES. FINALLY THE URGE
POLICYMAKERS TO REQUIRE THAT CSU
TO DEVOTE ADDITIONAL RESOURCES
TO DIRECT INSTRUCTIONS
SUPPORTING THE INSTRUCTORS AND
STAFF. GOOD STUDENTS SAY
EDUCATION AND COLLEGIATE
EXPERIENCE THEY DESERVE. THANK
YOU FOR YOUR CONSIDERATION.
THANK YOU. NEXT SPEAKER, PLEASE.
9 20 OR ALLOWING THE SNOW OPEN.
GOOD EVENING. SHARON MEMBERS,
SHANNON SWANSON ON BEHALF OF THE
HEALTH STATE STUDENT ASSOCIATION
, ALSO PART OF THE CALIFORNIANS
FOR COLLEGE AFFORDABILITY
COALITION. WE THANK THE GOVERNOR
FOR HIS COMMITMENT TO THE
COMPACT AND OVERALL ARE GRATEFUL
FOR THE LEGISLATURE'S SUSTAINED
COMMITMENT TO HIGHER EDUCATION,
ACCESS, AFFORDABILITY, EQUITY
AND SUCCESS. WE ALSO
RESPECTFULLY ASK THAT THE
LEGISLATURE REMAIN COMMITTED TO
CALIFORNIA'S COLLEGE STUDENTS BY
PRIORITIZING CALDERON REFORM AND
2024 SO THAT 150,000 ADDITIONAL
BLOW INCOME STUDENTS CAN RECEIVE
AID. WE ALSO ASK THAT YOU
CONTINUE TO HELP STUDENTS ACROSS
OUR STATE BY PRIORITIZING
STUDENT HOUSING ANY POTENTIAL
DELAYS TO STUDENT HOUSING FUNDS
COULD FURTHER EXACERBATE
AFFORDABILITY AND SUCCESS GAPS
FOR MOST VULNERABLE STUDENTS.
THANK YOU FOR YOUR TIME AND
CONTINUED PARTNERSHIP. THANK
YOU. SPEAKER, PLEASE. LINE 21
YOUR LINE OF SNOW OPEN. I HAVE
TO SAY THE NEXT IN CALIFORNIA,
AND WE THANK THE LEGISLATURE OF
HER PASSING STATE MANDATE AROUND
TOPS. AKITA APPLICATION
COMPLETIONS A COUPLE BUDGET
CYCLES AGO AND APPRECIATE THE
FUNDING EFFORTS OR FUNDING
TOWARDS THESE EFFORTS, AND THEN
THEY REVISED, ESPECIALLY GIVEN
THE CURRENT BUDGET LANDSCAPE
JUST WANT TO ADVERTISE THE NEED
TO CONTINUE PROVIDING FURTHER
FUNDING FOR THE STOCK TO ENSURE
SUCCESSFUL INVITATION OF THIS
EFFORTS, INCLUDING STARTING
POSITIONS IN THE CASTRO COLLEGE
WORKSHOPS, ADDITIONALLY, TO
ENSURE THAT CALIFORNIA STUDENTS
ARE NOT HINDERED BY THE DECEMBER
FAST THE DOUBLET DELAY AND HAVE
THE ABILITY TO APPLY FOR
FINANCIAL AID. WE STRONGLY
RECOMMEND THE EXTENSION OF THE
STATEWIDE FINANCIAL AID
APPLICATION DEADLINE, INCLUDING
K TO PASS THE MARCH 2ND DEADLINE
AND FINALLY TO ECHO, SAYING WE
ALSO STAND AND CONTINUED STRONG
SUPPORT AND RESPECTFULLY REQUEST
THE LEGISLATURE PRIORITIZED
CALDERON REFORM NEXT YEAR. THANK
YOU. THANK YOU. LINE 23. YOUR
WINE IS NOW OPEN. THE EVENING
CHAIR AND MEMBERS. ZACHARIAH
WOULDN'T VICE PRESIDENT WHO
APPEARS FOR THE STUDENT SENATE
FOR CALIFORNIA COMMUNITY
COLLEGES. WE WANT TO SAY WE
APPRECIATE THE 8.8 0.22% COLA
AND SUPPORT THE STUDENT HOUSING
FROM THE FUNDING FOR COMMUNITY
COLLEGES IN THE BUDGET. UM
ESPECIALLY SINCE THE SYSTEM
SERVES THE STUDENTS WITH MOST
NEEDS, AND GIVEN THE CONCERNS
RUNNING, THE ENROLLMENT DECLINE
IS IMPORTANT TO REMEMBER SERVING
STUDENTS. BASIC NEEDS IS ONE OF
THE BIGGEST INCENTIVES FOR
GETTING STUDENTS TO ENTER AND
STAY ENROLLED AT OUR COLLEGES.
WE URGE YOU TO INCLUDE THESE IN
THE FINAL BUDGET AGREEMENT. UM
WE DO HAVE SOME CONCERNS ABOUT
THE STATUTORY FLEXIBILITY, THE
PROPOSED EDITORIAL FLEXIBILITY
PER STUDENT EQUITY AND
ACHIEVEMENT PROGRAM AND STUDENT
MENTAL HEALTH RESOURCES AS WELL
AS FOR THE SIGNIFICANT REDUCTION
FOR MAINTENANCE FUNDING. AND
WHILE THAT MAY 20 2400 DAYS
ISN'T CONSIDERATIONS HERE, YOU
CONTINUE TO EMPHASIZE THE NEED
FOR FULL CAL GRANT REFORM
IMPLEMENTATION WANTED THE
COMMITMENT MADE TO MAKE
FINANCIAL AID FOR CALIFORNIA'S
COLLEGE STUDENTS MORE EQUITABLE.
THANK YOU. THANK YOU, 17. GOOD
AFTERNOON, MR CHAIR MEMBERS
PARTITION WITH YOU ASPIRE. UH,
WE WERE WANTING TO JUST
APPRECIATE THE GOVERNOR AND FOR
THE REVISION PROPOSALS AND FOR
THE LEGISLATURE FOR THE WORK
THAT YOU HAVE DONE FOR EXPANDING
ACCESSIBLE AFFORDABILITY FOR
STUDENTS IN CALIFORNIA WITH THAT
LUCK TO RESPECTFULLY ASK FOR THE
APPROVAL OF THE MAIN DIVISION
PROPOSALS FOR THE ONGOING
FUNDING FOR CASH FOR COLLEGE AND
KINDLY LIKE YOUR REQUEST, THE
AMOUNT TO BE INCREASED TO THE
FULL $500,000 FOR CASH FOR
COLLEGE WORKSHOPS THAT THAT HAVE
BEEN SUPER HELPFUL IN INCREASING
AND EXPANDING ACCESS TO
FINANCIALLY APPLICATIONS FOR
STUDENTS. UH WE WOULD ALSO LIKE
TO ECHO WHAT, UH, SEATS SACK
FULL OF SHARED IN THAT WE WOULD
MEET ME TO PUSH THE PRIORITY
DEADLINE FROM MARCH 2 2. APRIL
2ND FOR NEXT YEAR. THAT WAS NOT
IF THEY CAN. MAYBE REGION WOULD
LOVE TO ADD THAT IN THERE AND
LASTLY, ECHOING WHAT MANY
PARTNERS SUPPORTERS SHARED IN
OUR SUPPORT FOR CAL GRANT, AND
WE LOOK FORWARD TO WORKING WITH
THE LEGISLATURE NEXT YEAR TO SEE
THEM IMPLEMENTED. THANK YOU VERY
MUCH. LINE 28. YOUR LINE IS NOW
OPEN. GOOD AFTERNOON TO
REMEMBERS AND ALVARADO ON BEHALF
OF THE CALIFORNIA EDGE COALITION
IN SUPPORT OF VARIOUS BUDGET
PROPOSALS, INCLUDING THE COLA
INCREASES FOR THE COMMUNITY
COLLEGES. UM AND THE CATEGORICAL
PROGRAMS AND THE FUNDING PER
STUDENT RETENTION RATES AND
ENROLLMENT STRATEGIES. WE'D ALSO
LIKE TO UPLIFT THE IMPORTANCE OF
CALDERON REFORM AS BUDGET
DISCUSSIONS CONTINUE THAT COULD
IMPACT NEXT YEAR'S FISCAL
OUTLOOK. WE RESPECTFULLY URGE
OUR STATE LEADERS TO PRIORITIZE
CALDERON REFORM SO THAT MORE LOW
INCOME STUDENTS, PARTICULARLY
ADULT LEARNERS, AND OPPORTUNITY
, YOUTH TEEN CRITICAL
FINANCIALLY, THE ASSISTANCE.
THANK YOU FOR YOUR TIME. THANK
YOU. NEXT SPEAKER, PLEASE. MR
CHAIR. THERE IS NO ONE ELSE TO
SIGNAL THAT THEY WISHED TO SPEAK
. OKAY. THANK YOU. WITH THAT WE
WILL ADJOURN. THANK YOU.