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Governor Gavin Newsom State Budget 2020-2021

July 9, 2020

 

On June 29, 2020, Governor Gavin Newsom signed the state budget for the 2020­–2021 fiscal year.  The Legislature passed its initial budget agreement on June 15 and after about a week of negotiations, the Legislature and the Governor came to a budget agreement on June 22.  The Legislature passed the budget on June 26.

Final Agreement for CSU

  • The CSU will maintain the $199 million in ongoing funds that Governor Newsom allotted in January.  However, the new budget includes a $498 million cut in funding to the CSU, resulting in a $299 million overall, ongoing cut.
  • The cut could be fully or partially restored on October 15 depending on how much federal funding the state receives
  • Full restoration would require $14 billion in federal funding.  The minimum threshold for any partial restoration is $2 billion.
  • Provides $6 million one-time General Fund for summer financial aid for students for students
  • Approves the redirecting of $146 million in unspent deferred maintenance funds from 2019–2020 to be used in 2020­–2021 to support core institutions, including enrollment and student support services
  • The Chancellor’s office will be in contact with each campus to discuss their use of unspent deferred maintenance funding
  • Withdraws the $6 million for CSU extension degree completion programs originally allotted in the Governor’s January proposal
  • The Student Aid Commission will provide $3 million in emergency financial aid for undocumented students
  • Campuses are expected to use their unrestricted reserves to mitigate cuts

 

Governor Newsom called on the federal government to step up and do its part to provide relief for states, especially since many cuts in the state budget are subject to the receipt of federal funding.

 

There are several budget trailer bills that have not yet been passed and have until the end of session in late August for the Legislature to take action. More adjustments to the budget may be coming as the state will have its tax revenues after July 15.