Higher Education
California Student Aid Commission

  • 2007-08 No Change
  • 2008-09 -$303 million General Fund

BUDGET YEAR
 The May Revision proposes a net General Fund decrease of $303 million over the level proposed in the Governor's Budget, as noted below:

  • $223 million of Cal Grant costs are proposed to be shifted from General Fund to reimbursements from TANF federal funds available to the Department of Social Services through an interagency agreement. This proposal is necessary to address a significant shortfall in TANF MOE expenditures. Please refer to the Health and Human Services section for more detail on the overall approach to resolving the TANF MOE shortfall.
  • $80 million savings associated with the elimination of the $80 million Cal Grant workload cost placeholder from the Governor's Budget that was included in the event UC and CSU increased fees beyond the level anticipated for the workload budget. As discussed, further increases by the UC and CSU governing boards are not anticipated.
  • A redirection of the $1.8 million one-time augmentation proposed in January for restoring shared services from the EdFund is proposed. Although the Transaction is delayed, CSAC will have to relocate to a new building due to termination of their current leased space. Funding is needed to address necessary costs including ongoing additional leased space and telephone system costs, and one-time cost for moving and office furnishings. These costs total approximately $1.8 million and thus offset the costs anticipated for adding 11 new staff, equipment, software and other technology related costs that would have been necessary to replace shared services from EdFund.
  • Reappropriation of state operations savings is proposed to be reserved for unanticipated costs related to CSAC's relocation or other unforeseen costs in 2008-09.
The May Revision also proposes the following Student Loan Operating Fund increases to conform to the delay in the EdFund Transaction:

  • $1 million from the Student Loan Operating Fund (SLOF) is proposed for restoration of the six CSAC positions reduced in January that are dedicated to the oversight of EdFund operations. These positions are proposed on a limited-term basis.
  • Additionally, the May Revision restores position authority for the remaining 24 EdFund civil service employees on a limited-term basis and restores over $779 million to reflect continuously appropriated SLOF expenditures ($96.4 million) and Federal Student Loan Reserve Fund expenditures ($682.8 million) for EdFund operations in 2008-09.
  • Trailer bill legislation is proposed to remove a potential statutory conflict that may impact the Commission's ability to act as a Lender of Last Resort for the Federal Family Education Loan program to address a potential crisis in the student lending markets resulting from changes in federal law and the concurrent general difficulties in the credit market.
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CHAPTER HIGHLIGHTS for Higher Education Back to Top

 Total Funding by Segment
 University of California
 California State University
image of black pointing arrowCalifornia Student Aid Commission
 California Community Colleges
PRINTABLE BUDGET DOCUMENTS Back to Top
Revised Budget Summary - Higher Education (pdf * - 70K) -
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 2008)
Displays Proposed Budget Summary information for Higher Education.