Legislative Update

July 23, 2021

Governor Newsom Signs Budget Bills

Before the Legislature left for its month-long summer recess last week, they approved and sent to Governor Gavin Newsom the last of the budget trailer bills for the 2021–22 State Budget package. Four of the five key budget bills that have the most effect on community college districts have already been signed by Governor Newsom with only the postsecondary budget trailer bill awaiting his action. Those five budget bills are:

• Assembly Bill (AB) 128 (Chapter 21/2021) is the main 2021–22 State Budget bill that was signed by the Governor on June 28, 2021
  • This is the placeholder budget bill that the Legislature had to approve in order to meet the June 15 constitutional deadline 

• Senate Bill (SB) 129 (Chapter 69/2021) is the budget bill junior that was signed into law by Governor Newsom on July 12, 2021
  • SB 129 amends AB 128 to reflect the State Budget agreement that Governor Newsom reached with legislative leadership 

• AB 132 (Committee on Budget) is the postsecondary education trailer bill that contains the implementing language for most of the higher education provisions in the State Budget and would make significant changes and additions to the higher education statute
  • This bill was sent to Governor Newsom on July 15, 2021, and he has until July 27, 2021, to take action on the bill or it becomes law without his signature 

• AB 138 (Chapter 78/2021) is the employment budget trailer bill that was signed by Governor Newsom on July 16, 2021
  • This bill reduces the School Employees Fund contribution rate from 1.23% down to 0.5% for the 2021–22 and 2022–23 fiscal years 

• SB 156 (Chapter 112/2021) is the $6 billion broadband budget trailer bill that signed by the Governor on July 20, 2021
  • SB 156 expands the state’s broadband infrastructure and requires the Public Utilities Commission to identify priority locations that include entities that lack sufficient high-bandwidth connections, including, but not limited to K–12 schools and higher education institutions

While we are still waiting for Governor Newsom to sign AB 132, we fully expect that he will sign that measure into law shortly. It’s important to note that while these five bills are the primary measures that make up the community college 2021–22 State Budget package, there will likely be a clean-up trailer bill introduced when the Legislature returns from its summer recess in mid-August as advocates and stakeholders highlight issues in the language of these measures that were put together very quickly to meet deadlines.

No Update Next Week 

With the Legislature on its summer recess and the 2021–22 State Budget package approved by the Legislature and essentially signed by Governor Newsom, we will be taking a break from next week’s update unless there is any breaking news. We will resume our weekly update the week of August 2, 2021.