SB148 - Higher education budget trailer bill.

Senate Bill No. 148 CHAPTER 745 An act to amend Sections 66023.5, 66205.5, 70022, 70023, 78052, 84321.64, and 88682 of, and to add Section 84750.7 to, the Education Code, and to amend Section 21 of Chapter 9 of the Statutes of 2025, relating to postsecondary education, and making an appropriation therefor, to take effect immediately, bill related to the budget. [ Approved by Governor October 13, 2025. Filed with Secretary of State October 13, 2025. ] LEGISLATIVE COUNSEL'S DIGEST SB 148, Committee on Budget and Fiscal Review. Higher education budget trailer bill. (1) Existing law requires each campus of the California Community Colleges to establish the position of Basic Needs Coordinator to assist students with on- and off-campus housing, food, mental health, and other basic needs services and resources, among other responsibilities, and to establish a Basic Needs Center where basic needs services and resources, including food services and resources, and staff are made available to students, as specified. Existing law requires each community college campus to report specified information related to basic needs services and resources to the office of the Chancellor of the California Community Colleges, and requires the chancellor’s office to develop and submit to the Governor and the Legislature an annual report based on, among other things, the data and information reported by campuses. This bill would require, for the 2026–27 and 2027–28 fiscal years, each community college campus to provide classified employees with access to food pantry services offered by the Basic Needs Centers and report data and information related to that access to the chancellor’s office, as specified, and would require the annual reports submitted by the chancellor’s office to include that data and information. By expanding the services provided by Basic Needs Centers, the bill would impose a state-mandated local program. (2) Existing law establishes the Middle Class Scholarship Program (MCSP) under the administration of the Student Aid Commission. Existing law, subject to an available and sufficient appropriation, makes an undergraduate student eligible for a scholarship award under the MCSP if the student is enrolled at the University of California or the California State University, or enrolled in upper division coursework in a community college baccalaureate program, and meets certain eligibility requirements. Existing law generally sets the MCSP award at an amount that equals the difference between the student’s cost of attendance and the sum of other scholarships, grants, or fee waivers, including those administered by federal, state, and institutions, awarded to the student in excess of $7,898 in expected student contribution, and, for dependent students with a household income exceeding $100,000, a percentage of the parents’ contribution, as specified. If a federal, state, or institutionally administered student need-based scholarship, grant, or fee waiver of less than $300 is identified following determination of a student’s MCSP award, this bill, for purposes of determining the student’s MCSP award amount, would not require the student’s MCSP award to be recalculated. The bill would require each institution participating in the MCSP to sign an institutional participation agreement with the commission acknowledging the institution’s willingness to administer the MCSP program, as specified. (3) Existing law establishes the Zero-Textbook-Cost Degree Grant Program to reduce the overall cost of education for students and to decrease the time it takes students to complete degree programs offered by community colleges. Existing law requires the Chancellor of the California Community Colleges to distribute grants to community college districts that meet specified criteria to develop and implement associate degrees or career technical education certificate programs earned entirely by completing courses that eliminate conventional textbook costs by using alternative instructional materials and methodologies, including open educational resources. Existing law authorizes grant recipients to use the funds for developing and implementing degrees to obtain professional development and technical assistance to assist in the development of degrees. This bill would authorize grant recipients to also use the funds for developing and implementing degrees to obtain professional development and technical assistance to assist in the development of open educational resource materials. The bill would authorize the chancellor’s office to allocate any unallocated resources appropriated for purposes of the program, on or after June 30, 2025, to a community college district to contract for the establishment of statewide open educational resources infrastructure, as provided. (4) Existing law requires the Board of Governors of the California Community Colleges to adopt regulations providing for the payment of apportionments to community college districts on a specified schedule. Existing law, notwithstanding that provision referenced above, adjusts the payment of apportionments to community college districts for the 2024–25 fiscal year to defer $243,693,000 of those payments to the 2025–26 fiscal year in accordance with a designated schedule. This bill would specifically reference two items of appropriation made in the Budget Act of 2025 as the funding source of the deferral payment described above. (5) The California Constitution establishes the Public School System Stabilization Account in the General Fund to provide a reserve for public school funding. The California Constitution requires, pursuant to specified calculations, the Controller to transfer certain moneys from the General Fund into the Public School System Stabilization Account for subsequent allocation to school districts and community college districts in fiscal years when the minimum state funding obligation for the support of school districts and community college districts falls below specified levels. The California Constitution authorizes the Legislature, upon the Governor’s proclamation declaring a budget emergency, as described, to enact a statute that, among other things, appropriates funds in the Public School System Stabilization Account for the support of school districts and community college districts. This bill would appropriate $49,734,000 from the Public School System Stabilization Account to be transferred by the Controller to Section B of the State School Fund for the support of community college districts, as provided. (6) Existing law encourages community colleges to develop and implement Mathematics, Engineering, Science, Achievement (MESA) programs directed at identifying students affected by social, economic, and educational disadvantages, increasing the number of eligible students served under MESA programs, and increasing student success in transferring and completing baccalaureate degree programs in science, technology, engineering, and mathematics majors at 4-year higher education institutions, as specified. Existing law requires the board of governors to adopt regulations for purposes of MESA programs and requires those regulations to be consistent with specified requirements and accomplish certain goals. This bill, beginning in the 2026–27 fiscal year, would prohibit the Chancellor of the California Community Colleges from reserving more than 3.5% of funds appropriated for MESA programs on administrative and discretionary costs of supporting MESA programs, and would authorize the chancellor, in consultation with the California Community College Association of MESA Directors, to allocate the reserved funds solely for statewide coordination and enhancement of MESA programs. (7) Existing law appropriates $20,000,000 from the General Fund to the board of governors to support emergency financial assistance grants to students attending a community college. Existing law requires the office of the Chancellor of the California Community Colleges to allocate these funds to community college district’s based on each district’s share of total California Dream Act application (CADAA) filers that also received a Cal Grant systemwide. This bill would authorize the chancellor’s office to reallocate those funds to community college districts to ensure all eligible CADAA filers receive a grant. The bill would require the chancellor’s office to report to the appropriate policy committees and budget subcommittees of the Legislature on the progress of community college districts in awarding the emergency financial assistance grants to students, as specified. (8) This bill, for the 2025–26 fiscal year, would make funding appropriated in the Budget Act of 2025 in certain items of appropriation for community colleges available for transfer by the Controller to Section B of the State School Fund for purposes of distributing those funds to community college districts. (9) (A) This bill would incorporate additional changes to Section 66023.5 of the Education Code proposed by SB 271 to be operative only if this bill and SB 271 are enacted and this bill is enacted last. (B) This bill would incorporate additional changes to Section 70022 of the Education Code proposed by AB 88 and SB 67 to be operative only if this bill and either, or both, of those bills are enacted and this bill is enacted last. (10) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. (11) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill. Digest Key Vote: MAJORITY Appropriation: YES Fiscal Committee: YES Local Program: YES Bill Text The people of the State of California do enact as follows: SECTION 1. Section 66023.5 of the Education Code is amended to read: 66023.5. (a) As used in this section: (1) “Basic needs services and resources” includes, but is not limited to, housing, food, clothing, feminine hygiene, diapers, technology, childcare, and mental health services and resources. (2) “Coordinator” means a basic needs coordinator established pursuant to this section. (b) Each campus of the California Community Colleges shall do all of the following: (1) No later than July 1, 2022, establish the position of the Basic Needs Coordinator, and designate a staff person as the Basic Needs Coordinator to serve as the single point of contact for students experiencing basic needs insecurity related to basic needs services and resources. The coordinator shall act as a broker in identifying, supporting, and linking students to on- and off-campus housing, food, mental health, and other basic needs services and resources. To ensure the effectiveness and impact of this position, the coordinator shall be a dedicated position solely focused on addressing the basic needs of students and meet qualifications such as experience providing services to high-need and diverse populations. The coordinator shall oversee and coordinate with other staff tasked with addressing students’ basic needs, shall inform students of on- and off-campus basic needs services and resources and how to access them, and shall develop on- and off-campus partnerships to provide basic needs services and resources to their students. (2) (A) No later than July 1, 2022, establish a Basic Needs Center, which means a central location on campus where basic needs services, resources, and staff are made available to students. The Basic Needs Center is intended to be a one-stop, single location and point of contact for students to more easily access and gain awareness of basic needs services and resources. The campus shall make a reasonable effort to locate all on-campus basic needs services and resources at the Basic Needs Center. If the campus cannot reasonably locate all basic needs services or resources at the Basic Needs Center, the campus shall provide students with the location and contact information, including name, telephone number, and email address, for all basic needs services and resources not located in the Basic Needs Center. The coordinator shall be housed in the Basic Needs Center. (B) Each Basic Needs Center shall help ensure that students have the information they need to enroll in CalFresh, the California Earned Income Tax Credit (CalEITC), the Young Child Tax Credit (YCTC), the California Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), and other relevant government benefits programs. Each Basic Needs Center shall coordinate with their campus financial aid department or financial aid office. This section does not require nor encourage the Basic Needs Center to be combined or colocated with the financial aid department or financial aid office. The funding made available by the Budget Act of 2021 to implement this section, or any subsequent Budget Act or statute to implement this section, shall not be used to combine or colocate the Basic Needs Center with the financial aid department or financial aid office and shall not be used for the administration of student financial aid programs, including staffing. Each Basic Needs Center shall connect students to the financial aid department or financial aid office as appropriate to ensure that students are receiving all available financial aid. Each Basic Needs Center shall coordinate with their local homelessness response system to refer students to community resources available to address homelessness in addition to services and resources provided by the campus. Basic Needs Centers may provide support to students who can be reasonably expected to enroll in the upcoming term and to provide support to students during summer and winter breaks who were previously enrolled or are enrolled for the upcoming fall or spring term. (C) Campuses shall endeavor, to the extent feasible, to use a portion of any funds made available for basic needs support for providing funds directly to students to address urgent needs. To the extent that a Basic Needs Center is already in place, that center may be used to satisfy the requirements of this section. If the existing Basic Needs Center fulfills only part of the requirements of this section, basic needs services and resources shall be expanded as needed to satisfy all the requirements of this section. (3) (A) No later than February 1, 2022, develop a document that shall be provided to students at the Basic Needs Center, once established pursuant to paragraph (2), in either electronic format or paper form, and that shall be made available to students online, that clearly lists on- and off-campus basic n [Text truncated for display. Full text available on Congress.gov.]