Summary of Governor's Proposed Budget for FY 2021-22

Fri Jan 8 16:25:04 PST 2021

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To:       Senate Faculty

Fr:        Jason Stajich
             Chair, Riverside Division of the Academic Senate

Re:       Summary of Governor's Proposed Budget for FY 2021-22

Dear Colleagues -

Please find Assistant Vice Chancellor Romero's summary of the proposed budget which I think are useful for campus to be aware of.

Sincerely,

Jason Stajich

---------- Forwarded message ---------
From: Elizabeth Romero <elizabeth.romero at ucr.edu<mailto:elizabeth.romero at ucr.edu>>
Date: Fri, Jan 8, 2021 at 1:40 PM
Subject: Governor's 2021-22 Budget Introduction
To: Elizabeth Romero <elizabeth.romero at ucr.edu<mailto:elizabeth.romero at ucr.edu>>

Colleagues,

Governor Newsom released his January Budget proposal today. Below is a summary of the key points and a description of the provisions that affect the University. The higher education summary document and health summary document are attached. You can view the full summary document here.<http://www.ebudget.ca.gov/FullBudgetSummary.pdf>

Total Budget
Governor Newsom today introduced his 2021-22 budget, which proposes $164.5 billion in State General Fund expenditures. This budget utilizes $18.4 billion in new discretionary surplus and includes a $15.6 billion reserve.

University of California
The proposed budget includes a total of $3.819 billion in State General Fund support for University of California. The Governor’s proposed budget provides the University with $136.3 million, or 3.9%, increase in ongoing funding over the 2020-21 level, bringing total ongoing funding to $3.59 billion. The University is also provided with $225.3 million in one-time funds. The Regents’ Budget Plan had requested a base-budget increase of $518.3 million and one-time funds of $250 million.

Under the proposal, the University’s primary General Fund appropriation would include $3.514 billion of ongoing funds. This amount reflects a $127.4 million increase in new ongoing funding over 2020-21 for campuses and $225.3 million in one-time funds.

The proposed budget continues to fund UCOP (including ANR and UC Path) separately from the University’s primary General Fund allocation.
The total UCOP budget is $305.9 million, which is $8.9 million more than in 2020-21. In addition, budget bill language would authorize a campus assessment of up to $7.3 million for ANR. The budget bill language authorizing a campus assessment for UC Path remains the same as in prior years.

In total the Governor’s Budget Introduction proposes to restore $100.3 million of the $300.8 million reduction UC received in 2020-21. The Governor is framing this as a 3% base budget increase, rather than a base budget restoration.

The Governor’s Budget Introduction includes the following funding for University of California Health:

  1.  $12.9 million for PRIME
  2.  $1 million in permanent base budget to bring Prop 56 GME funding level to the full $40 million
  3.  $1.25 million one-time for a health modeling consortium partnership between UCSF and DPH

New Requirements in Budget Bill Language:
The Governor’s Budget Introduction includes budget bill language outlining the following expectations:

  1.  Hold resident tuition flat for 2021-22
  2.  Take action to close fully close equity gaps by 2025.  Work with CCC and CSU to develop shared metrics and aligned plans.
  3.  By June 30, 2022 increase by 10% number of online learning opportunities from 2018-19 baseline.
  4.  Better align student learning objectives with workforce needs.
  5.  Develop dual admissions pathway for first time CCC freshmen to receive guaranteed admission to UC. This will be a trailer bill, but language is not written yet.
Ongoing Investments (Total $136.3 million):

  1.  $103.9 million for 3% base budget increase (this is a partial restoration of the $300M cut)
  2.  $12.9 million for PRIME
  3.  $15 million for basic needs (student mental health and technology)
  4.  $1.5 for Immigrant Legal Services Center located at UC Davis
  5.  $1 million to transition UC campuses to CANVAS, the same learning management system used by CCC
  6.  $1 million for firearms violence research at UC Davis
  7.  $1 million for Proposition 56 GME backfill to reach a total appropriation of $40 million
One-Time Investments ($225.3 million):

  1.  $175 million for deferred maintenance/energy efficiency
  2.  $20 million for the Governor Gray Davis California Institutes for Science and Innovation (CISI)
  3.  $15 million for emergency financial aid
  4.  $5 million for culturally competent professional development online
  5.  $5 million for California Subject Matter Project learning loss
  6.  $2 million for California Subject Matter Project ethnic studies
  7.  $2 million for ANR fire advisors
  8.  $1.25 million for UC Health to conduct health modeling consortium with Department of Public Health
Other Higher Education Budget Items of Interest:

  1.  Provides $200.1 million in incremental ongoing funds and $225 million in one-time funds to CSU
  2.  Fully funds for Prop 98 for K-12 and Community Colleges
  3.  $15 million for the Longitudinal Data System development, in which UC is a partner. These funds will flow through the California Government Operations Agency (GovOps).

The actual 2021-22 budget bill has not yet been released, so at this time I don’t have Budget Bill Language to comment on. I will provide an update if significant Budget Bill Language is released.

The Governor traditionally releases trailer bill language associated with the proposed budget in late February. When the trailer bill language becomes available, the UCOP State Governmental Relations office will be in contact with campus representatives with any relevant information. At this point we do know about two items of trailer bill language that will be released later. These include:

  1.  Restoration of Cal Grants to students who lost their Cal Grants when the pandemic forced them to move back in with their parents;
  2.  Providing a $6,000 access award to foster youth.
You can view the Governor’s Budget Summary here: http://www.ebudget.ca.gov/FullBudgetSummary.pdf

The Governor’s trailer bill language will be posted here once available: https://esd.dof.ca.gov/trailer-bill/trailerBill.html

Please let me know if you have any questions.

Best regards,
Elizabeth Romero
Assistant Vice Chancellor of Governmental & Community Relations

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