Higher Education

The May Revision for the University of California (UC) and California State University (CSU) remains consistent with the Higher Education Compact, and includes workload adjustments to the Cal Grant program and a policy proposal to increase funding for nursing enrollments for CSU.

As discussed in the Introduction and Maximizing the Value of Public Assets sections, the Administration also proposes to privatize the Student Aid Commission's (CSAC) non-profit loan guarantee organization, EdFund, which will enable the state to receive one-time revenues estimated at $1 billion. As a consequence of this transaction, the state will resume funding for the cost of the Commission's state operations and financial aid awareness programs. This proposal will not affect the availability of low-cost student loans to California's college and university students. The Administration proposes that any sale ensure that the purchasing agency maintains the California loan guarantee function.

For the California Community Colleges (CCC), both workload and policy expenditure revisions are proposed. The changes are driven by the revised Proposition 98 guarantee for the current and budget years as discussed in the K-12 section, revised property tax revenues that are estimated to increase over the January figures in both current and budget years, and base adjustments related to enrollment declines in the CCC that have been reconciled for the current and prior years. The revised current-year guarantee and new estimates of the Proposition 98 Reversion Account provide significant one-time funding for Community Colleges totaling over $152 million, with $100 million reflected in the current year.

Overall General Fund and related Proposition 98 expenditure growth for 2007-08 for higher education increases by 5.7 percent over the current year revised level in the May Revision, as compared with the 6.4-percent growth referenced in the Governor's Budget Summary. However, this reduced percentage is driven by increased current-year expenditures due to the additional amounts appropriated for CCC in satisfaction of the revised 2006-07 Proposition 98 guarantee. When considering that current-year funding for CCC will be available for expenditure in the budget year, the May Revision increases overall General Fund and Proposition 98-related funding for the two-year period for Higher Education by approximately $53 million.
CHAPTER HIGHLIGHTS for Higher Education Back to Top

 University of California
 California State University
 California Student Aid Commission
 California Community Colleges
PRINTABLE BUDGET DOCUMENTS Back to Top
Revised Budget Summary - Higher Education (pdf * - 8K) -
Provides the entire Higher Education Chapter in pdf format.
ADDITIONAL INFORMATION Back to Top
Revised Budget Detail - Higher Education
Displays Revised Budget Detail information for Higher Education.

Proposed Budget Summary - Higher Education (January 2007)
Displays Proposed Budget Summary information for Higher Education.