Gov. Gavin Newsom’s proposed 2022-23 budget provides a total of $12.7 billion in Proposition 98 funding and property taxes for community colleges, an increase of $560 million, or 4.6 percent, compared to 2021-22.

This increase would drastically improve affordability and enrollment, making the community college system more equitable for students to finish college. Specific spending proposals include:

Apportionments — The budget includes an increase of $409.4 million in Prop. 98 funding for a 5.33 percent cost-of-living adjustment (COLA) for apportionments and $24.9 million ongoing Prop. 98 funding for 0.5 percent enrollment growth.

Student Centered Funding Formula (SCFF) — The SCFF’s hold harmless provision, which ensures community colleges receive the greater of the formula’s core funding computation or their 2017-18 funding level annually adjusted by a cost-of-living adjustment (COLA), is currently set to expire after 2024-25.

To prevent fiscal declines between 2024-25 and 2025-26, the budget proposes to create a funding floor for districts that allows all districts to transition to the core formula over time. The proposal allows funding rates to continue to increase by the statutory COLA, but removes its application to the hold harmless provision commencing with 2025-26 and permanently extends the revised hold harmless provision.

The administration also supports the recommendation made by the Student Centered Funding Formula Oversight Committee to integrate an unduplicated first-generation student metric within the SCFF’s supplemental allocation once a reliable and stable data source is available.

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